The clarification may not be correct.
Washing allowance can be excluded from ESI only if Uniform is provided by the Company, wearing of Uniform is compulsory and the allowance is reasonable proportion to the total wage. For eg. if a person get 5000 Rs gross paid and is paid another 5000 as Washing allowance, ESI department will not accept this as genuine washing allowance, but only a sham arrangement to exclude 5000 from purview of payment of ESI. So be careful.:icon7:
Similarly Conveyance allowance is excluded only if it is a real reimbursement of travelling expenses. If it is a fixed amount paid to all employees irrespective of how he is traveling, it is nothing but wage, and my merely labellings it as washing allowance, it will not excluded.:x
Production incentive, if paid every month or every two month, or during shorter period will be Wage. No way it will be excluded. But pay it once six month or year, as production bonus, you can exclude. :icon10:
Meal or food allowance paid regularly in cash has to be taken into account for payment of ESI contribution. Free meal can be excluded. However reimbursement of meal payment for duty related travel can be excluded. If you provide free meal, by way of coupen with arrangement with canteen or hotel, it can be excluded. :huh:
Similary News paper and entertainment allowance has to be taken into account for payment of ESI contribution. Rarely a company will provide entertainment allowance or evben news paper allowance to employee drawing monthly salary below 10000, and if you pay it in cash, pay ESI contribution also. :-P
Rest of clarification is OK.
From India, Coimbatore
54Washing allowance can be excluded from ESI only if Uniform is provided by the Company, wearing of Uniform is compulsory and the allowance is reasonable proportion to the total wage. For eg. if a person get 5000 Rs gross paid and is paid another 5000 as Washing allowance, ESI department will not accept this as genuine washing allowance, but only a sham arrangement to exclude 5000 from purview of payment of ESI. So be careful.:icon7:
Similarly Conveyance allowance is excluded only if it is a real reimbursement of travelling expenses. If it is a fixed amount paid to all employees irrespective of how he is traveling, it is nothing but wage, and my merely labellings it as washing allowance, it will not excluded.:x
Production incentive, if paid every month or every two month, or during shorter period will be Wage. No way it will be excluded. But pay it once six month or year, as production bonus, you can exclude. :icon10:
Meal or food allowance paid regularly in cash has to be taken into account for payment of ESI contribution. Free meal can be excluded. However reimbursement of meal payment for duty related travel can be excluded. If you provide free meal, by way of coupen with arrangement with canteen or hotel, it can be excluded. :huh:
Similary News paper and entertainment allowance has to be taken into account for payment of ESI contribution. Rarely a company will provide entertainment allowance or evben news paper allowance to employee drawing monthly salary below 10000, and if you pay it in cash, pay ESI contribution also. :-P
Rest of clarification is OK.
From India, Coimbatore
Dear Friends
There has been a a recent change in the Wage limit and it has been increased from Rs.10,000/- to Rs.15,000/- with effect from 1st May, 2010. I quote the following lines from the most authentic source i.e. the Notification issued by the Government of India, Ministry of Labour & Employment from New Delhi, the 20th April, 2010.
1. These Rules may be called the Employees’ State Insurance (Central) Amendment Rules, 2010.
2. These shall come into force from the 1st day of May, 2010.
3. In the Employees’ State Insurance (Central) Rules, 1950, in Rule 50, for the words “ten thousand”, wherever they occur, the words “fifteen thousand” shall be substituted.
I request you to kindly visit my website: http://www.clapsindia.com and check with your management whether they are looking for the services that are available at the website on retainership basis and revert to me, especially on compliance of Labour Laws and compliance Audit.
with regards and thanks
sincerely
Dr. KSN Sarma
Advocate & Management Consultant
more at http://citehr.com#ixzz0nRjJK0EE
From India, Hyderabad
There has been a a recent change in the Wage limit and it has been increased from Rs.10,000/- to Rs.15,000/- with effect from 1st May, 2010. I quote the following lines from the most authentic source i.e. the Notification issued by the Government of India, Ministry of Labour & Employment from New Delhi, the 20th April, 2010.
1. These Rules may be called the Employees’ State Insurance (Central) Amendment Rules, 2010.
2. These shall come into force from the 1st day of May, 2010.
3. In the Employees’ State Insurance (Central) Rules, 1950, in Rule 50, for the words “ten thousand”, wherever they occur, the words “fifteen thousand” shall be substituted.
I request you to kindly visit my website: http://www.clapsindia.com and check with your management whether they are looking for the services that are available at the website on retainership basis and revert to me, especially on compliance of Labour Laws and compliance Audit.
with regards and thanks
sincerely
Dr. KSN Sarma
Advocate & Management Consultant
more at http://citehr.com#ixzz0nRjJK0EE
From India, Hyderabad
ESI: Employees’ State Insurance Act, 1948
Calculations: ESI will be calculated from Gross salary
Basic
DA
HRA
and other Allowances
Employee: 1.75%
Employer: 4.75%
Coverage: All the employees Drawing wages up to Rs.15, 000/- per month engaged either directly or thru’ contractor, THIS IS FROM MAY 2010
From India, Velluru
Calculations: ESI will be calculated from Gross salary
Basic
DA
HRA
and other Allowances
Employee: 1.75%
Employer: 4.75%
Coverage: All the employees Drawing wages up to Rs.15, 000/- per month engaged either directly or thru’ contractor, THIS IS FROM MAY 2010
From India, Velluru
Dear friends, its one of the best posts for sharing the knowledge about ESI, special thanks to Hameed sir for explaining the issues elaborately..........
From India, Hyderabad
From India, Hyderabad
Dear Devansh,
ESIC is deducted on Gross salary per month. It is paid from both the sides employee as well as employer.
Employee pays 1.75% of his/her gross salary and
Employer pay 4.75% of his/her gross salary.
For ESIC coverage the ceiling is 10,000/- gross salary per month. But now the coverage of ceiling is 15,000/-gross salary per month.
Regards,
Anshu...............
From India, Delhi
ESIC is deducted on Gross salary per month. It is paid from both the sides employee as well as employer.
Employee pays 1.75% of his/her gross salary and
Employer pay 4.75% of his/her gross salary.
For ESIC coverage the ceiling is 10,000/- gross salary per month. But now the coverage of ceiling is 15,000/-gross salary per month.
Regards,
Anshu...............
From India, Delhi
Dear friends i am newly join to this commnity and i want to know this ESIC cheque favour to whom please any one give me information. what should i write on account pay cheque for esic monthly payment. please do the needfull
From India, Bangalore
From India, Bangalore
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ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls
ESI - Allowances Rules - Salary.docx