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jnkramn
2

Dear All
IN our company we have Gross salary which inclusion of Travel allowance and Washing Allowance.
We have few clarification both components should include for the ESIC calculation or there is any provision to exclude the component from the ESIC .
Pls advise.
Regards
Jnkramn

From India, Chennai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Abhijit_Barua
Asst. Manager Compliance
+2 Others

saiconsult
1898

Mr.JNKRAMN
Section 2(22) of ESI Act which defines wages itself excludes travelling allowance.As reagrds washing allowance, in my view,if it is paid to reimburse the expenses incurred by an employee becuase of nature of employment like wearing uniform, it may be excluded but if it is paid to all the employees as part of salary, I am afraid it shall be included for contribution since it forms part of Ist part of the definition of wages.
B.Saikumar
HR & Labour Law Advsisor
Mumbai

From India, Mumbai
Abhijit_Barua
47

ESI deduction calculation on gross amount but some of the allowance are not include for ESI calculation like washing allowance, night shift allowance. only TA amount include in esi calculate.
From India, Kolkata
jnkramn
2

Dear Mr. Abhijit I have doubt in Night Shift allowance. at the time of ESIC aufit they have advised to make necessary deduction for night shift allowances! We also practicing the same. Pls advise.
From India, Chennai
brijeshhrd@gmail.com
Hi,
“Night shift allowance” it is an additional remuneration paid to the employee for performing duty at night time during the hours of darkness. This amount is paid by way of incentive under the scheme of settlement entered into between the Management and its workmen and hence are wages within the meaning of Sec.2 (22) of the ESI Act.
Therefore ESI will be deducted on “Night shift allowance”.
Thanks,
Brijesh Vishwakarma

From India
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