Hi to everyone, Will, ESI will be deduct for night allowance. Please clarify it. Thanks Suresh.K
From Singapore
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4From Singapore
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Hii Dear, ESI is deducted from gross salary and night allowance is variable pay so it will not be considered fro deduction. Regard’s Shaikh
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Suresh,
ESI is to be paid on all allowances, except for other allowances that are paid for defrayal purposes, such as washing allowance, etc.
Furthermore, any remuneration paid to an employee, regardless of its nomenclature, requires ESI payment.
From India, Hyderabad
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ESI is to be paid on all allowances, except for other allowances that are paid for defrayal purposes, such as washing allowance, etc.
Furthermore, any remuneration paid to an employee, regardless of its nomenclature, requires ESI payment.
From India, Hyderabad
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Dear Suresh............ Night shift allowance is variable but it also comes under ESI deduction...... Varaprasad Hyderabad
From India, Hyderabad
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From India, Hyderabad
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Hello Suresh,
The ESIC Amendment states that there will be no ESIC deduction if the nature of the allowance is not part of attendance. For example, allowances like washing allowance, conveyance, and any other allowance that is not given regularly. If there is a gap of more than 02 months for any allowance being given regularly, ESIC deduction will not apply.
From India, Velluru
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The ESIC Amendment states that there will be no ESIC deduction if the nature of the allowance is not part of attendance. For example, allowances like washing allowance, conveyance, and any other allowance that is not given regularly. If there is a gap of more than 02 months for any allowance being given regularly, ESIC deduction will not apply.
From India, Velluru
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Dear Mr.Bunti, Kindly elaborate your comment regarding ESI deduction on night allowance. Regard’s Shaikh
From India, Bhubaneswar
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From India, Bhubaneswar
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ESIC is deducted on the Gross Salary, if your Salary Gross Salary Structure includes fixed or variable Night Allowance, then i think the ESIC will be applicable.
From India, Mumbai
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From India, Mumbai
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Hi Bunti,
In our factory, there is only a general shift (9 to 5.30). Some days after 5.30 pm, the workers will continue working past midnight or into the next day morning. For this, we are providing a night allowance of Rs. 100/-, for which we have to deduct ESI.
Thanks,
Suresh K.
From Singapore
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In our factory, there is only a general shift (9 to 5.30). Some days after 5.30 pm, the workers will continue working past midnight or into the next day morning. For this, we are providing a night allowance of Rs. 100/-, for which we have to deduct ESI.
Thanks,
Suresh K.
From Singapore
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Hi,
Night allowance is applicable for ESI, as the ESI is applicable for overtime as well.
Nimesh Paul
Stringz - HR Consulting, Staffing, Recruiting in Kerala
Thank you.
From India, Kochi
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Night allowance is applicable for ESI, as the ESI is applicable for overtime as well.
Nimesh Paul
Stringz - HR Consulting, Staffing, Recruiting in Kerala
Thank you.
From India, Kochi
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Hi to every one i am doing the project of employee commitment towards their organization. i want review of literature of employee commitment . Thanks M.SURESH
From India, Madras
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From India, Madras
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Dear Syamprasad,
Yes, please refer to the directions of the Madras High Court, which state that payment made in pursuance of the agreement squarely falls within the definition of 'wages' (ESI Corporation, Madras V. Amalgamations Repco Limited, Madras - 1983 (2) LLJ 193).
Rajusiachen
From India, Coimbatore
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Yes, please refer to the directions of the Madras High Court, which state that payment made in pursuance of the agreement squarely falls within the definition of 'wages' (ESI Corporation, Madras V. Amalgamations Repco Limited, Madras - 1983 (2) LLJ 193).
Rajusiachen
From India, Coimbatore
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Hi everyone, The Night shift allowance will be considered for ESI contribution as per the Act. For any clarification please visit ESIC portal on the web for "wages". Regards, Kosal raj.
From India, Madras
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From India, Madras
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Dear Suresh K,
There are two parts to the salary: a) Daily Salary, i.e., basic and all allowances, and b) Reimbursement. Though washing allowance, conveyance allowance, etc., are paid in the monthly salary, it is a reimbursement. If an employee is not issued a uniform and if there is transport facility, then you have to deduct ESI contribution.
Now, night shift allowance. As per my knowledge, in many companies, they have second and third shift allowances, and companies are liable to deduct ESI contribution because it is an allowance that they are being paid in their monthly salary.
Regards,
Clement
From India, Pune
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There are two parts to the salary: a) Daily Salary, i.e., basic and all allowances, and b) Reimbursement. Though washing allowance, conveyance allowance, etc., are paid in the monthly salary, it is a reimbursement. If an employee is not issued a uniform and if there is transport facility, then you have to deduct ESI contribution.
Now, night shift allowance. As per my knowledge, in many companies, they have second and third shift allowances, and companies are liable to deduct ESI contribution because it is an allowance that they are being paid in their monthly salary.
Regards,
Clement
From India, Pune
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Dear Cite members,
I want to clarify one thing - just by mere "NOMENCLATURE," you cannot escape from the payment of contributions. The main concept of considering allowances such as washing allowance or shoe allowance is because these allowances may represent defrayal expenses. In other words, due to the nature of the work or the work environment, an employee may be required to maintain certain items like a uniform or shoes, which should be properly established by the employer.
Furthermore, all reimbursed allowances against actual expenditures incurred may be exempted from the ESI.
One key point to remember is that all remuneration paid in cash, fixed in nature (though it may vary depending on the number of days worked), and with a payment periodicity of less than two months are covered under the ESI.
Any amounts paid by the employer in kind - i.e., those not specified in the terms of the service agreement or provided as reimbursement for actual expenses - may be exempt from the ESI.
I hope this clarifies the issue.
Thank you.
From India, Hyderabad
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I want to clarify one thing - just by mere "NOMENCLATURE," you cannot escape from the payment of contributions. The main concept of considering allowances such as washing allowance or shoe allowance is because these allowances may represent defrayal expenses. In other words, due to the nature of the work or the work environment, an employee may be required to maintain certain items like a uniform or shoes, which should be properly established by the employer.
Furthermore, all reimbursed allowances against actual expenditures incurred may be exempted from the ESI.
One key point to remember is that all remuneration paid in cash, fixed in nature (though it may vary depending on the number of days worked), and with a payment periodicity of less than two months are covered under the ESI.
Any amounts paid by the employer in kind - i.e., those not specified in the terms of the service agreement or provided as reimbursement for actual expenses - may be exempt from the ESI.
I hope this clarifies the issue.
Thank you.
From India, Hyderabad
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ESI deduction.doc