Dear Seniors , Please let me know , that as employer should deduct the ESIC on Conveyance Allownce(part of the salary) or not. if yes, please share any notification on the same.
From India, Coimbatore
7From India, Coimbatore
the esi will be on gross as every per esic act 1948 which includes all allowance.. regds
From India, Hyderabad
From India, Hyderabad
Sir(s),
The Conveyance Allowance paid regularly without consideration of any actual expenses is a part of wages under section 2(22) of Employees' State Insurance Act, 1948 and contribution on the same is payable as a part of wages.
However, Conveyance Charges on actual basis paid separately ( viz. by vouchers) in order to defray special expenses incurred for any travel/journey is not part of wages and no contribution on the same, in my opinion, is payable.
There appears to be no separate notification for the same since it is laid down in above Act. However, in case of any doubt, I will suggest you to take up the matter with appropriate Regional/Sub-Regional Office of ESIC of your area indicating your ESI Code No.also.
With regards;
From India, Noida
The Conveyance Allowance paid regularly without consideration of any actual expenses is a part of wages under section 2(22) of Employees' State Insurance Act, 1948 and contribution on the same is payable as a part of wages.
However, Conveyance Charges on actual basis paid separately ( viz. by vouchers) in order to defray special expenses incurred for any travel/journey is not part of wages and no contribution on the same, in my opinion, is payable.
There appears to be no separate notification for the same since it is laid down in above Act. However, in case of any doubt, I will suggest you to take up the matter with appropriate Regional/Sub-Regional Office of ESIC of your area indicating your ESI Code No.also.
With regards;
From India, Noida
Dear Varun,
The honle Supreme Court in ESIC , Madras V Sundaram Clayton ltd (Mopeds division) reported in 2004 (1) LLn 630 had held that conveyance allowance shall NOT form part of wages.
The Madras High Court also categorically ruled out in its latest judgement in W.A.936 of 2011 decided on 30.6.2011 (ESIC Chennai v Cosmopolitan Club) that conveyance allowance shall not form part of wages.
The exclusion clause in sec.2(22) of the ESI Act clearly excludes any travelling allowance or the value of any travelling concession. Inspite of the above judicial ratio the ESIC taking advantage of an earlier Karnataka H.C. judgement is including conveyance allowance/travelling allowance as wages.
Regards,
S.SANKARALINGAM
RETD.SR.DY.DIRECTOR,ESIC
ADVOCATE & LABOUR LAW ADVISOR
Mobile 9790754727
e.mail srihari1953 @ gmail. com
From India, Chennai
The honle Supreme Court in ESIC , Madras V Sundaram Clayton ltd (Mopeds division) reported in 2004 (1) LLn 630 had held that conveyance allowance shall NOT form part of wages.
The Madras High Court also categorically ruled out in its latest judgement in W.A.936 of 2011 decided on 30.6.2011 (ESIC Chennai v Cosmopolitan Club) that conveyance allowance shall not form part of wages.
The exclusion clause in sec.2(22) of the ESI Act clearly excludes any travelling allowance or the value of any travelling concession. Inspite of the above judicial ratio the ESIC taking advantage of an earlier Karnataka H.C. judgement is including conveyance allowance/travelling allowance as wages.
Regards,
S.SANKARALINGAM
RETD.SR.DY.DIRECTOR,ESIC
ADVOCATE & LABOUR LAW ADVISOR
Mobile 9790754727
e.mail srihari1953 @ gmail. com
From India, Chennai
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