Dear Sir,

I am Amit Sharma. I want to know if ESI is applicable to conveyance allowance as I heard that it is not applicable on conveyance. Please provide your expertise and your experience on what to do.

Thanks

From India, Delhi
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Dear Mr. Amit,

If the conveyance is paid along with the salary as a consolidated amount, then you need to deduct and pay ESI contributions on the conveyance allowance. If an employee is spending some amount whenever he is traveling on official duty, submitting bills, and claiming the amount, then you need not deduct the ESI on the same.

Regards,
Kamesh

From India, Hyderabad
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Dear Amit,

ESI deduction simple policy: If you are given any allowance with your salary, then ESI must be deducted. Any reimbursement allowances like conveyance, washing, etc., do not require ESI payment. Therefore, please do not include any reimbursement allowances with the salary.

Thank you.

From India, Delhi
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