As mentioned the forum bonus can be paid on monthly basis and it can be part of CTC.
Now my querry is that for calculation of eligibility under ESI, the bonus so paid on monthly basis should be treated as ESI salary.
Further do we have to pay ESI on bonus so paid as well for the employees who are covered under the.ESI ACT? Hope I am clear.
Thanks,
Subhash Arora
From India, Gurgaon
Now my querry is that for calculation of eligibility under ESI, the bonus so paid on monthly basis should be treated as ESI salary.
Further do we have to pay ESI on bonus so paid as well for the employees who are covered under the.ESI ACT? Hope I am clear.
Thanks,
Subhash Arora
From India, Gurgaon
Bonus paid monthly or at an interval of not exceeding two months as part of gross salary or CTC shall be taken as Wages for deciding eligibility and contribution payable. A careful interpretation of the verdict in the case of ESIC Vs. Bata reveals that if bonus is paid on a monthly basis as an agreement between the employer and employee ( showing the bonus in CTC itself is a proof to show that bonus is a part of remuneration and not depended upon profitability of the firm) the same can be taken as "additional remuneration paid in an interval of not exceeding two months". Otherwise, there should be separate agreement with employees (in general) to the effect that total bonus due will be disbursed in monthly installments due to reasons stated thereon. The same will be the case of incentive bonus paid. If minimum incentive is shown as part of salary (CTC) then also it will come under the heading 'wages/ salary'.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
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ESI Amendment Act 2010-Gazette Notification-01 -06-10.pdf
FORMS under the ESI Act.doc