Sir, Thank you for this.
We have following components as part of our Fixed Gross Salary -
BASIC, HRA, SPECIAL ALLOWANCE, CONVEYANCE, PERSONAL ALLOWANCE and MEASURED ALLOWANCE.
Conveyance is fixed to Rs.800/- per month.
Can we consider all these components as Wages for ESIC eligibility?
From India, Mumbai
We have following components as part of our Fixed Gross Salary -
BASIC, HRA, SPECIAL ALLOWANCE, CONVEYANCE, PERSONAL ALLOWANCE and MEASURED ALLOWANCE.
Conveyance is fixed to Rs.800/- per month.
Can we consider all these components as Wages for ESIC eligibility?
From India, Mumbai
Dear Friend,
ESI will deduct on monthly Gross salary. If any employee Gross salary exceeds Rs. 15000/- ESI will applicable as per ESI act from May,2010 earlier Rs. 10,000. If the above mentioned Brake-Up is paying Monthly, If all together is Rs .15000/- or more ESI is applicable.
From India, Hyderabad
85ESI will deduct on monthly Gross salary. If any employee Gross salary exceeds Rs. 15000/- ESI will applicable as per ESI act from May,2010 earlier Rs. 10,000. If the above mentioned Brake-Up is paying Monthly, If all together is Rs .15000/- or more ESI is applicable.
From India, Hyderabad
Dear all, I wanted to know what are the salary components applicable to esi contribution as well not applicable components. pls guide on this with provision. Regards Kasim - Bangalore 9686317494
From India, Bangalore
From India, Bangalore
Dear Kasim
Within the wage limits of Rs 15,000/- almost all the allowances are wages under ESIC. Typically, if any allowance is paid to an employee for more than continuous 2 months it becomes the regular salary component and ESIC is applicable on the same.
From India, Mumbai
Within the wage limits of Rs 15,000/- almost all the allowances are wages under ESIC. Typically, if any allowance is paid to an employee for more than continuous 2 months it becomes the regular salary component and ESIC is applicable on the same.
From India, Mumbai
Hi
Under the ESI Act, the definition of wages is defined U/s 2 (22):
"wages" means all remuneration paid or payable to an employee, if the terms of the contract of employment, express or implied, were fulfilled and inlcudes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or layoff and other additional remuneration, if any, paid at an intervals not exceeding two months, but does not include:
a) any contribution paid by the employer to any pension fund or provident fund or under this Act,
b) any travelling allowance or the value of any travelling concession,
c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment, or
d) any gratuity payable on discharge.
Accordingly, any amount payable to an employee who are covered under the Act are wages except those mentioned in the exceptions above. However, any conveyance allowance or travel allowance is exempted from coverage. Similarly, washing allowance is also exempted from coverage under the Act.
The present ceiling for ESI coverage is Rs.21,000/- which is likely to be revised to a higher amount shortly.
From India, Chennai
Under the ESI Act, the definition of wages is defined U/s 2 (22):
"wages" means all remuneration paid or payable to an employee, if the terms of the contract of employment, express or implied, were fulfilled and inlcudes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or layoff and other additional remuneration, if any, paid at an intervals not exceeding two months, but does not include:
a) any contribution paid by the employer to any pension fund or provident fund or under this Act,
b) any travelling allowance or the value of any travelling concession,
c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment, or
d) any gratuity payable on discharge.
Accordingly, any amount payable to an employee who are covered under the Act are wages except those mentioned in the exceptions above. However, any conveyance allowance or travel allowance is exempted from coverage. Similarly, washing allowance is also exempted from coverage under the Act.
The present ceiling for ESI coverage is Rs.21,000/- which is likely to be revised to a higher amount shortly.
From India, Chennai
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx