Small confusion regarding ESI.
In our company we follow the salary payment as fixed pay & variable pay (VP) again in variable pay we split into guaranteed VP & performance based VP. Guaranteed VP will be paid quarterly & performance based pay will be paid at the end of the yr..
I got stuck here...
1. ESI is calculated for an employee only based on gross salary (ie the gross sal should be more than or equal to 10 K/pm) what if the employee gross is less than 10k but we are paying VP once in a quarter which will be more than 10K??
2. What about the ESI coverage if an employee is covered under insurance which company is providing.
Please help me to take a call on this.
17th September 2009 From India