Dear Ms. Gayathri,
As per the ESI Act, 1948, The ESI contrbution is paid on all the allowances except travelling reimbursements and washing allowances. In reagrds to the ESI coverage, and annual payout will be exempted in case of Diwali Bonus, Attendance Bonus and LTA paid.
Exemption for ESIC in case if the salary drawn is above Rs.15001/-. In case if the employer also has the medical facilities offered are much better to that of the ESIC hospitals.
Employers can apply for exemption with respect to a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27, the employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
25th September 2012 From India, Visakhapatnam