Dear All,
Is E.S.I. not applicable on House Rent Allowance? If so, in which act is it mentioned? Please inform me at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=a291c2hpa18xNT k3NTNAeWFob28uY29tVA==[/IMG].
Thanks,
Koushik
From India, Calcutta
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Is E.S.I. not applicable on House Rent Allowance? If so, in which act is it mentioned? Please inform me at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=a291c2hpa18xNT k3NTNAeWFob28uY29tVA==[/IMG].
Thanks,
Koushik
From India, Calcutta
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HOUSE RENT ALLOWANCE
House Rent Allowance is wage in cases where it is being paid. Notional amount of house rent can not be presumed as wages for deciding the coverage. In cases where an employee is being paid house rent allowance, the same will be included both for coverage and contribution. In cases where the staff quarters have been allotted the amount of salary and wages paid will count for coverage and contribution and no notional house rent allowance is to be presumed in such cases.
In the cases of Braithawait & Co. Vs. ESIC and M/s.Harihar Polyfibres Vs. ESIC, Bangalore, Supreme Court has also held that house rent allowance is a ‘wage’ under Sec.2(22) of the ESI Act.
(Earlier instructions were issued vide memo No.T-11/13/11/15-Ins.III dt. 28.9.75, No.Ins.III(2)/15/15/74-Ins.Desk.I dated Dec.,76, No.T-11/13/53/19-84/Ins.IV dt. 19.9.84 & No.D.Ins.II/11/3087/303 dated 1.3.1985).
Regards
Anirban Biswas
9831035036
Source ESIC Website
From India, Mumbai
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1House Rent Allowance is wage in cases where it is being paid. Notional amount of house rent can not be presumed as wages for deciding the coverage. In cases where an employee is being paid house rent allowance, the same will be included both for coverage and contribution. In cases where the staff quarters have been allotted the amount of salary and wages paid will count for coverage and contribution and no notional house rent allowance is to be presumed in such cases.
In the cases of Braithawait & Co. Vs. ESIC and M/s.Harihar Polyfibres Vs. ESIC, Bangalore, Supreme Court has also held that house rent allowance is a ‘wage’ under Sec.2(22) of the ESI Act.
(Earlier instructions were issued vide memo No.T-11/13/11/15-Ins.III dt. 28.9.75, No.Ins.III(2)/15/15/74-Ins.Desk.I dated Dec.,76, No.T-11/13/53/19-84/Ins.IV dt. 19.9.84 & No.D.Ins.II/11/3087/303 dated 1.3.1985).
Regards
Anirban Biswas
9831035036
Source ESIC Website
From India, Mumbai
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ESI attracts all wages, which includes HRA also. ESI contribution is applicable on gross income. Regards Harminder
From India, Raurkela
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From India, Raurkela
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Is ESI applicable where the wage itself is high, i.e. more than 15,000/-
From India, Calcutta
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From India, Calcutta
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HRA – House Rent Allowance.pdf