#FrequentQuestionAnswered
“Is annual bonus considered to be a part of the ESIC calculation in an employee salary?”
3 Likes
Answer:
When calculating ESI, some of the components that include in an employee’s gross salary include Basic Pay, Dearness Allowance, City Compensatory Allowance, House Rent Allowance, Attendance & Overtime Pays, Meal Allowance etc.
However, does not include the components annual bonus, retrenchment compensation, encashment of leave and gratuity.
So annual bonus is not considered for ESI calculation.
In case of questions, feel free to ask in the comments below.
5 Likes
Hi,
Salary regular components will attract for ESi calculation like Basic, HRA, FBP, Overtime etc. Components which are one time payment will not attract for ESI calculation like yearly Bonus, Incentives, Leave Encashment , Gratuity etc.
Hope with the above explanation your question is answered.
5 Likes
Hi,
Need help on Annual Bonus.
We have declared Annual Bonus in September payout. After getting the email of Annual bonus, next week one of the employee resigned. Can we proceed with stopping the bonus disbursement as it was Annual part?
Thanks in Advance
Aprajita
1 Like
No you cannot stop it as it was bonus for the period he has served you
1 Like