New LIVE Course: Learn the Practical Nuances of IPR Drafting by Adv. Gautam Matani. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Rashmi Dutta (Social Compliance Auditor)     10 June 2008

ESI deduction on wages earned by working on Public / National Holiday


Kindly confirm whether the ESI deduction is to made from the wages earned by working on a public / National holiday or not. Secondly the payment for working on public/national holiday  must be included in the payroll or not?.

Thanks & Regards,

Rashmi Dutta





 5 Replies

H. S. Thukral (Lawyer)     10 June 2008

The definition of wages in the Act includes all payments made to an employee in fulfilment of terms of contract except excluded in the provisos to the definition. Overtime wages are therefore wages under the Act. In the payroll the payments should be separately  shown as overtime wages since the same may not amount to wages under other labour legislations.   

Guest (n/a)     10 June 2008

Wages for National holidays will be entitled for ESI contribution as it has to be considerd as overtime.

Shailesh Bharti (Auditor)     08 July 2009

Pls Help me on ESIC deduction topic


Pratheep Kumar (Asst. Manager - HR)     08 July 2009


As per the Payment of Wages Act if a worker worked on Holidays he/she must be paid OT at the rate of double of Normal Wages.

As per Section 2(22) of ESI Act, Wages means all remuneration paid or payable in cash to an employee.
It may be included in pay roll or payment may be made separately.
We have to deduct ESI for National / Festival holidays. 

Pragadeesh (Lawyer/Factory certification consultant/Cyber crime Analyst)     17 July 2009

As a social compliance auditor u should check the following points.

1.Permission from Inspector of factories with the acceptance of the workers

2.Premium wages (double) for working on national festival holiday

3.Or compesated holiday provided within 90 days

4.pls check the National festival holidays register form vi

5.and ofcourse workers interview for crosscheck



Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register