27 October 2012
hello, I have doubt that whether payment made to laborers for the overtime payment allowance are taken for the calculation of PF/ESI or not??
and if Chokidar is recruited as permenanant employee of the firm/concern then , whether the salary pay to him is convered under PF/ESI laws or not??
27 February 2014
Overtime is not a regular and continuous payment, but it is of an occasional nature. If overtime is also taken for wage limit for coverage of an employee, he may be going out of coverage for some time and again coming within the orbit of the scheme, when overtime is not there. This frequent interruption from the scheme deprives him of the benefits admissible under the scheme even after making payment of contribution for part of a contribution period. To ensure continued security and protection, overtime is excluded for determining the wage ceiling for coverage of an employee. However, it is included for payment of contribution to cover the risk during the period he was on overtime work, and to enable him to draw the cash benefits at an enhanced rate, as by adding overtime wages to his average daily wages, he is fitted in to the next higher slab in the Standard Benefit table in Rule 54 for claiming cash benefits.
27 February 2014
The following items are taken in to account for computation of wages for payment of ESIC contribution. 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 Batta paid to running staff. i) i)Actual payments made towards leave Salary , lay off compensation, or wages for strike period.
CAclubindia
