Esi Exemption - Esic [Thread 417156] - CiteHR
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I have doubt in Esi exemption can any one help me……. Its urgent for me
The query is below
In our concern we going to give increment to our employees, as in a regular concept the increment is applicable to pf and esi….. But my higher officials feel, increasing pf its fine but increasing the esi is necessary because already we are paying esi for some amount then why should we increase it because less people only going to esi others are for name shake they having the esi…
For example,
Mr. X - current salary is 150 per day/ 3900 monthly ( 26 days )
Mr. x – current basic is 2600 and allow is 1300
Mr. x – pf amount is 312/- and esi amount is 69/-
We plan to increase 100/- rs per day
Question is, whether we can exclude this 100/- in esi, if any exemption is there for allowance.
Kindly guide me please….

Hi Bharath There is no other option. You should increase even the ESI contribution. I donno on which grounds you are trying to exempt.
You can definitely opt for an exemption for ESIC payment by putting the enhanced amount of Rs.100 as "Washing Allowance".But prior to that make sure that the previous wage rate of Rs.150/day is at per or over the Minimum Wages notification as per the scheduled employment in the type of establishment your organization falls to as per the state concerned.
If no then adjust the part of Rs.100,firstly,to adhere to the said provision and then for the balance amount put it as "Washing Allowance" which shall be exempted of ESIC Contribution.(both side-Employee & Employer)

Thank u for u reply P. jeeva sir,
I heard about in esi, washing allow is exempted for esi contribution, like this any other allow is there in esi. Bcz my higher officials said labour are not much interested for esi deduction rather than pf contribution.
so we try to give salary as it is, but for esi make little contribution that's enough like this they expecting.
any allow is there in esi like washing allow .... kindly tel me sir

thanks for your reply Mr. Arnab Dasgupta sir,
for our concern the minimum wage is 140 (Basic+da) as our state govt. fixed .. but already we paying high amount only as 150 per day....
if we go for washing allowance means if it is possible for every month or every year... we didn,t provide uniform for labours then how we show washing allowance...
can you guide how to show washing allowance in muster roll or we have to make separate resigter or not... if we have to get any official documents from esi regarding this washing allowance.

Wage has nothing do with Muster Roll.See,in case of audit and inspection the officials shall cross check between the Challan and the register for the break ups.
So far as the documentation is at par "Al is Well".

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