Is Performance incentives, overtime bonus are part of gross salary, how it will work if we want to have the ESIC benefit?

Ask the Community Statutory Compliance
1

Dear All,
We want to give increment to employees, but many employees gross salary is 21000 at limit required by ESIC, for those employee we dont want that their esic benefits should go due to hike in salary. So if we include performance incentives/bonus or give overtime salary will it be calculated under gross salary

As per our salary structure at greythr we have salary master of basic (45%) hra (30%), medical allowance (10%) and educational allowance (15%)

If we give overtime or bonus or incentives it comes under gross salary on payroll and payslip . As increment payment is not one time pay its everymonth pay, if we increase gross salary ESIC benefit will go. So want suggestion under which component we can give increment . How we should design our salary structure , In appointment letter we mention CTC that ctc value should be gross salary value (of salary master components) or inclusive of employer pf/esi contribution.

So kindly put your comments which can help us to structurize the payroll, appointment letter ctc, increment as incentive/bonus to avail esic benefit .
If we give incentives/bonus how we should frame it in greythr payroll portal , currently it comes under gross

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Answers in blue.

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You can decide a fixed annual amount, put it under annual variable salary and not add in gross salary. keep changing the variable amount every month to keep the term variable fulfilled.

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Hi,

We can’t see the answers in Blue.

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Hey @mohanjacob,

Hope you are doing well.

Kindly note that if you have posted something, we are not able to see your response. So request you to kindly share the same once again.

Regards,
Community Manager.

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Overtime and Bonus won’t come under ESI, Performance Incentives if is on a regular basis, you have to pay ESI contribution.
Thank you

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