Dear All,
In our company, we have Gross salary which includes Travel allowance and Washing Allowance. We need some clarification: should both components be included for the ESIC calculation, or is there any provision to exclude these components from the ESIC? Please advise.
Regards,
Jnkramn
From India, Chennai
2In our company, we have Gross salary which includes Travel allowance and Washing Allowance. We need some clarification: should both components be included for the ESIC calculation, or is there any provision to exclude these components from the ESIC? Please advise.
Regards,
Jnkramn
From India, Chennai
Mr. JNKRAMN
Section 2(22) of the ESI Act, which defines wages, itself excludes traveling allowance. As regards washing allowance, in my view, if it is paid to reimburse the expenses incurred by an employee because of the nature of employment like wearing a uniform, it may be excluded. But if it is paid to all employees as part of the salary, I am afraid it shall be included for contribution since it forms part of the first part of the definition of wages.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Section 2(22) of the ESI Act, which defines wages, itself excludes traveling allowance. As regards washing allowance, in my view, if it is paid to reimburse the expenses incurred by an employee because of the nature of employment like wearing a uniform, it may be excluded. But if it is paid to all employees as part of the salary, I am afraid it shall be included for contribution since it forms part of the first part of the definition of wages.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
ESI deduction calculation on gross amount but some of the allowance are not include for ESI calculation like washing allowance, night shift allowance. only TA amount include in esi calculate.
From India, Kolkata
From India, Kolkata
Dear Mr. Abhijit I have doubt in Night Shift allowance. at the time of ESIC aufit they have advised to make necessary deduction for night shift allowances! We also practicing the same. Pls advise.
From India, Chennai
From India, Chennai
Hi,
�Night shift allowance� it is an additional remuneration paid to the employee for performing duty at night time during the hours of darkness. This amount is paid by way of incentive under the scheme of settlement entered into between the Management and its workmen and hence are wages within the meaning of Sec.2 (22) of the ESI Act.
Therefore ESI will be deducted on �Night shift allowance�.
Thanks,
Brijesh Vishwakarma
From India
�Night shift allowance� it is an additional remuneration paid to the employee for performing duty at night time during the hours of darkness. This amount is paid by way of incentive under the scheme of settlement entered into between the Management and its workmen and hence are wages within the meaning of Sec.2 (22) of the ESI Act.
Therefore ESI will be deducted on �Night shift allowance�.
Thanks,
Brijesh Vishwakarma
From India
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