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Harshil PatelAllowance are not a part for ESIC deduction, but overtime wages are deductable part for ESIC, your gross salary plus Overtime wages , total of this is stands for ESIC deduction at rate of 1.75% from your salary.
Altough, the ceiling of ESIC deduction is capped at Rs.15000/Month Gross however earning as OT & incentives shall be added for determination of earned gross for the month,in case the fixed gross is upto Rs.15000/Month.
However,reimbursement of traveling expenses is not be clubbed on the fixed gross as the ESIC act itself exempts "Conveyance" from gross salary.
From India, Chandigarh
Sharmila DasDear Mr. U R Patil,
ESI is an applicable statutory compliance where the induvidual is applicable whose salary is lesser or equal to 15000 gross salary. In case if any allowances earned will not effect the ESI payable. Your ESI will effect at 1.75% and the employers by 4.75% irrespective to the wages/ allowances paid. Here the 4.75% is not contributed from the employees salary but employer remitts its share to the ESIC account.
From India, Visakhapatnam
MahalakshmiShankaraNarayananDear Mr.Patil, For the Gross Crossing 15K , the employer has also no need to pay the contributions. The Employee & Employer both can stop it. Dear Senoirs, Suggest me whether its right or not
From India, Chennai