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Esic doubt !??!

Roshan A (Chartered Accountant) (458 Points)

25 November 2011

Can anyone tell me what is included in term "WAGES" for calculation of ESI contribution...

The company pays following allowances to its employees:

HRA, EDUCATION ALLOWANCE, CONVEYANCE ALLOWANCE, LEAVE TRAVEL ALLOWANCE, ATTENDANCE BONUS,UNIFORM ALLOWANCE, OVERTIME WAGES .

Thanks in Advance,

ROSHAN.

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7 Replies

C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 25 November 2011

ESIC is applicable to overall amount @ 1.75%

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Roshan A (Chartered Accountant) (458 Points)
Replied 26 November 2011

Thanks Sandeep,

But should i include conveyance and overtime allowance also to decide whether a person is an Employee under ESI ACT ??

chanderpal singh rawat (Accounts Executive) (30 Points)
Replied 02 December 2011

Hi,

can anybody help me for my problem

i have join new company in april 2011 and there is no pf & esic deduction but on aug 2011 they started deducting the ESIC but my problem is Now they tell me we will deduct the esic from april 2011

is this right or wrong.

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 05 December 2011

Dear Chanderparl singh rawat,

You are fully entitled for the benefits of ESIC and EPF, if you come within that limit from the date of posting and your employment has become ready to provide you such benefit, even though belatedly, it is in your interest. You also insist for EPF.

What is ur basic salary. If it come under limit of celing then u r eligible the same. I don't under stand that ur establishment is detect from april then is they detect from ur current month salary. Hw

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 December 2011

Originally posted by : Roshan Alwani
	Thanks Sandeep, But should i include conveyance and overtime allowance also to decide whether a person is an Employee under ESI ACT ??

under ESIC, no payment is exempted except the 1st aid and meals provided to employees ( even cash paid for such incidence is included, if its found that the amount is paid to employee in place of goods/services)