VPT Associates
Hi, Please confirm, whether employees earning Gross Salary below Rs.5200/- need to contribute to ESI... If the employees are not required to contribute, then pls. confirm, whether Employer has to contribute the entire 4%.

Also, Please confirm, whether ESI need to be deducted from Conveyance Allowance paid to employees separately...

From India, Chennai
Madhu.T.K
4246

Workers whose daily rate of wages is Rs 176 or less than that need not contribute their share. But the employer shall contribute his share (3.25%) only. That means no need to pay 4%

Conveyance allowance paid separately as reimbursement will not attract ESI. Now following a Supreme Court verdict, even the traveling or conveyance allowance paid along with salary is excluded from the salary for ESI contribution.

From India, Kannur
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