Applicability of PF & ESI

Hi Team,
Is there any PF/ESI applicability on gratuity and additional payout for financial help to nominee on the death of employee

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Dear @mimran

PF or ESI is not applicable on the Gratuity.

The other amount that you pay apart from the Basic + DA is not covered under PF .

Even in ESI since it’s not a recurring amount - is not considered for ESI calculation, hence forth any amount you additionally is free from all these.

Ensure it’s paid under a proper component with IT inclusion.

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