bhandhavi.r
69

Dear Seniors,
I need your advice on our pay structure. We have conveyance reimbursements as a part of salary pay which varies from month on month depending on their travel and submission of bills.
My doubt is do conveyance reimbursements come into total earnings and ESI is calculated on that or not.
Thank you in advance.

From India, Hyderabad
boss2966
1168

Dear Bhandhavi
The conveyance Allowance if you pay then you need to pay. But it is only reimbursement (means the employee has already spent and you are making good of the conveyance expenses). So it should not be added in his salary slip and it must be paid on vouchers and maintained separately.
Even for the conveyance allowance also we need not to pay the ESI contribution (Provided your location is in Chennai or in Tamil Nadu) for which I am attaching the Chennai High Court Judgement Copy on Conveyance Allowance - Which I got downloaded from this site itself). Hope it will be useful for you.
All the best

From India, Kumbakonam
Attached Files (Download Requires Membership)
File Type: pdf ESI-Judgement_on_conveyance_Allow[1].pdf (484.9 KB, 82 views)

pon1965
604

Bhandavi, As said by Bhaskar, Conveyance reimbursements are not part of CTC. It will not come under the purview of Gross earnings as the amount was spent for official purposes. Pon
From India, Lucknow
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