Sir,
We are having the practice of paying HRA, Education allowance and Transport allowance on monthly basis. Is this come under wages for Esi purpose and whether the contribution is paid from this?.
Medical allowance we are paying by bymonthy and LTA yearly. Whether this is wages and not deemed to be wages for Esi
Regards
Revathy
From India, Madras
We are having the practice of paying HRA, Education allowance and Transport allowance on monthly basis. Is this come under wages for Esi purpose and whether the contribution is paid from this?.
Medical allowance we are paying by bymonthy and LTA yearly. Whether this is wages and not deemed to be wages for Esi
Regards
Revathy
From India, Madras
Hi Revathy,
Generally every allowance which is earning of employee, will be deemed as wages under preview of ESI Act. e.g. if we are paying washing allowance to meet the expenses of washing of his cloths, then payment of washing allowance will be against his expenses and it will be deemed as wages under ESI Act . But if we are giving Heat Allowance then ESI will apply on Heat Allowance.
If we are paying/showing LTA & Medical against expenses then LTA & Medical Allowance should not deemed as wages under ESI Act.
Regards,
Anuj Trivedi
From India, Lucknow
25Generally every allowance which is earning of employee, will be deemed as wages under preview of ESI Act. e.g. if we are paying washing allowance to meet the expenses of washing of his cloths, then payment of washing allowance will be against his expenses and it will be deemed as wages under ESI Act . But if we are giving Heat Allowance then ESI will apply on Heat Allowance.
If we are paying/showing LTA & Medical against expenses then LTA & Medical Allowance should not deemed as wages under ESI Act.
Regards,
Anuj Trivedi
From India, Lucknow
Hi,
I am with what Ms Priya is saying. You may still get into the web site of
http://esic.nic.in/ and get more information on this.
While On the subject, I opened a new topic of CitiHr Meet in Chennai, why don't you people share your ideas of how about arranging a meet that took place in Delhi so that we can share our views and thoughts.
Pls do respond.
Sampath
From India, Madras
I am with what Ms Priya is saying. You may still get into the web site of
http://esic.nic.in/ and get more information on this.
While On the subject, I opened a new topic of CitiHr Meet in Chennai, why don't you people share your ideas of how about arranging a meet that took place in Delhi so that we can share our views and thoughts.
Pls do respond.
Sampath
From India, Madras
Dear Revathi,
As per the Wages Act HRA/TA/Mobile/LTA all the allowances except washing allowance should be calculated. ESI is applicable for a gross salary less than or equal to 10000 only.
Regards
Aleem
From India, Mumbai
As per the Wages Act HRA/TA/Mobile/LTA all the allowances except washing allowance should be calculated. ESI is applicable for a gross salary less than or equal to 10000 only.
Regards
Aleem
From India, Mumbai
Dear Ravathy,
Whatever allowance paying on month basis, it will attract ESIC.
LTA does not attract ESIC.
The Medical allownace paying on bi-monthly basis & may on producing actual medical vourcher, means reimbursement. Then it will not attract ESI deduction or coverage.
regs
Bhushan Dahanukar
From India, Mumbai
Whatever allowance paying on month basis, it will attract ESIC.
LTA does not attract ESIC.
The Medical allownace paying on bi-monthly basis & may on producing actual medical vourcher, means reimbursement. Then it will not attract ESI deduction or coverage.
regs
Bhushan Dahanukar
From India, Mumbai
hi,
as per esi act, i doubt there is a provision for get exemption on the following components while taking gross pay as the criteria for esi eligibility:
1. Transport allowance
2. Washing allowance
3. Contributed epf / pension fund
can experts let me clarify with clear proofs that how far we can go legally while synchronizing with min wages as well as esi exemption on the above components ?
4. Is there any way for getting complete esi exemption ? What is procedure ? Ours is a hospital.
as per esi act, i doubt there is a provision for get exemption on the following components while taking gross pay as the criteria for esi eligibility:
1. Transport allowance
2. Washing allowance
3. Contributed epf / pension fund
can experts let me clarify with clear proofs that how far we can go legally while synchronizing with min wages as well as esi exemption on the above components ?
4. Is there any way for getting complete esi exemption ? What is procedure ? Ours is a hospital.
From India, Visakhapatnam
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ESI Wages.doc