ESI & PF Applicability on Incentive
Vipul Acharya (Account Officer) (647 Points)
23 May 2020Vipul Acharya (Account Officer) (647 Points)
23 May 2020
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36355 Points)
Replied 23 May 2020
EPF is always calculated on Basic Pay Only.
When calculating ESI, the elements that comprise an employee’s gross salary include Basic Pay, Dearness Allowance, City Compensatory Allowance, House Rent Allowance, Attendance & Overtime Pays, Meal Allowance, Uniform Allowance, Incentives and other Special Allowances.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India