Professional Tax (Maharastra) & ESI Ddeduction

	Message From: hopegovind	Total Posts: 13	Join Date: 06/04/2010
Rank: Executive	Post Date: 02/06/2010 09:38:49	Points: 65	Location: India

Dear Friends,

w.e.f. May 01, 2010, all employees drawing gross salary of Rs. 15000 per month comes under bracket of ESIC Act and all organisation covered under ESI Act need to deduct employee contribution from their salary. Regarding this, I need a clarification. Is annual bonus payable and performance based incentive also need to be considered part of earning i.e. gross salary? Also, employer contribution and LTA can be considered as a gross salary component?

As far as my knowledge concerns, Bonus and Incentives are not a fixed component of salary so it should not be considered. I am not clear about employer contribution to PF and LTA. Kindly give your valuable comment on this?

Further, due to incentive and bonus payable, if an employee's monthly salary goes more than 5000 and 10000, will be the professional tax payable @ 175 and 200 respectively or we should only consider monthly fixed payable.

Regards
Govind

	Message From: kprasoon	Total Posts: 34	Join Date: 06/04/2010
Rank: Executive	Post Date: 03/06/2010 05:18:40	Points: 170	Location: India

Only monthly fixed components of the salary structure can be considered as gross salary. Bonus can not be considered in gross salary. Incentive, if amount is fixed monthly then can be considered a component of gross salary.

No employer's contribution (PF, ESI etc.) can be a component of a gross salary.

Whatever is paid as fixed amount on monthly basis can be a component of gross salary.

thanks
Kamal Prasoon