Hello, Can anybody tell me that should we have calculate ESIC on overtime. Can we remove this component (OT) from pay slip for ESIC calculation. Thanks & Regards, Monali
From India, Pune
1From India, Pune
Hi Monali, If you want to avoid ESI for OT, you can pay the same separately or after salary. regards raja
From India, Madras
From India, Madras
max shield for ESI is 15,000, so yes, as long as the gross salary is less than 15000 you should calculate the ESI for OT.
From India, Hyderabad
From India, Hyderabad
yes , it is compulsory to pay esic on ot. according the esic act 1948 it is compulsory or obligation to pay esic below 15000 rs/-. if you r showing the ot on wages slip and the gross salary below 15000/- you have to pay the esic on ot.
for example if your basic salary is 10000 and hra 2000 and your ot is 20 hour then you pay esic is 239 rs/- condition is that it should be show inthe over time register.
From India, Delhi
for example if your basic salary is 10000 and hra 2000 and your ot is 20 hour then you pay esic is 239 rs/- condition is that it should be show inthe over time register.
From India, Delhi
Dear Ms. Monali
Its compulsory to deduct ESIC on OT. You may avoid ESIC deduction on OT by paying OT amount separately by voucher. But if it is deducted during ESIC Inspection, you would not only have to pay the amount but also pay penalty & interest, which would be substantial amount. Its not only monetary loss but also a black mark on the reputation of the Organization
ITS ADVISABLE TO PAY ALL THE STATUATORY PAYMENTS TO AVOID FUTURE COMPLICATIONS.
Regards
Ganesh S Iyer
Truth Always Prevails.
From India, Mumbai
Its compulsory to deduct ESIC on OT. You may avoid ESIC deduction on OT by paying OT amount separately by voucher. But if it is deducted during ESIC Inspection, you would not only have to pay the amount but also pay penalty & interest, which would be substantial amount. Its not only monetary loss but also a black mark on the reputation of the Organization
ITS ADVISABLE TO PAY ALL THE STATUATORY PAYMENTS TO AVOID FUTURE COMPLICATIONS.
Regards
Ganesh S Iyer
Truth Always Prevails.
From India, Mumbai
ESI will Not be detected For who is getting pay <15 k , ESI Will Be Calculated based on your MOnthly Fixed pay - Nothing To do with overtime payments - overtime payments comes under Incentive Category
From India, Bangalore
From India, Bangalore
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Overtime calculation- weekly hours of work.PDF
SALARY SHEET CALCULATION.xls