Esic deduction query.

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Dear All, I have query about ESIC deduction. if xyz have gross salary Rs.12500/- and CTC in month 14000/- then what is ESIC deduction. 1.75% from employee contribution and 4.75% from employers contribution, this deduction on which amount ??? gross salary or monthly CTC
Replies (3)

The following wage components are taken into account for computation of wages for 
payment of contribution.19
a) Basic Pay,/Wages/Salary;
b) D.A/ HRA/ CCA/ Overtime/ officiating allowance/ Night shift allowance/ efficiency 
allowance/ Heat, Gas, Dust allowance/ Education allowance/ Food & Tea allowance/ 
conveyance allowance;
c) Wages/ salary/ pay for weekly off and public holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee during the period of suspension;
f) Attendance Bonus or incentive or exgratia in lieu of Attendance Bonus or production 
incentive;
g) Regular Honorarium or salary or remuneration paid to a Director;
h) Collection Bhatta paid to running staff. 
i) Actual payments made towards leave salary, lay off compensation, or wages for strike 
period.
j) Any other remuneration paid or payable in cash to an employee if the terms of contract 
of employment, expressed or implied were fulfilled.

Thanks Sir for your valuable reply.

smiley

Its on actual earned gross salary, you should include reimbursements while calculating Gross.

 

Also Incentive & bonus or payments like that which is made at interval of 2 months should be excluded..

 

Thanks

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