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Esic deduction query.

Dipesh (Executive) (1006 Points)

26 November 2014

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

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3 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 26 November 2014

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.