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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24Yes, 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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