Harsh Kumar Mehta
Consultant In Labour Laws/hr
IR-MANAGER
Manager (ir&legal)
Rajesh Kumar Dubey
Manager - Hr
+1 Other

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Please suggest weather the below work done by a company covered in the definition of wages under ESIC Act:-
1.Advertisement & publicity expenses
2.Auditors remuniration & expenses
3.Printing & fabrication /installation of hoardings outside company
4.Branding & exhibitions in trade fairs etc
5.Shooting epenses of a ad film of the company by professsonals
6. Creative remuniration
7.office maintenance inside factory
8. subscription of periodicals
9. alloction of admin expenses
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1.Sir, booking of expenses, in my opinion, under any accounting head or under any item is irrelevant and meaningless. The main important aspect is whether the amounts are paid to any person who qualify to be an "employee" as defined under ESI Act, 1948 and rules/regulations framed thereunder for the work relating to or connection with the work of the unit/factory.

2. Because, the firms/employer are at liberty to book the expenses of wages or work done as per their sweet will, hence the inspecting authorities under said Act generally see the accounting heads of expenses to examine as to whether the compliance has been made properly by the firm/employer. If the inspecting authorities traces any omitted wages under any accounting/items heads viz. as indicated by you in your remarks, they will definitely note and make a record of such wages and claim contributions under said Act.

3. The accounting systems are so different that in some firms/units even the wages are found booked/entered in purchase heads.
Sec 2(22) of ESIC act defines what is wages:

The term “wages” has been defined u/s 2(22) of the Act in three parts as under:-

1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled.

2. and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay of.

3. and other additional remuneration, if any paid at intervals not exceeding 2 months.

However, it does not include:-

a. any contribution paid by the employer to any pension fund or provident fund or under ESI Act,

b. any traveling allowance or the value of any traveling concession,

c. any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment or

d. any gratuity payable on discharge.

The above is an extract from ESIC BARRACKPORE :: Always at your service

Most of the headings in original query(SL no 1-9) do not fall as elements of wages in my opinion.
Dear Friends
ESI Inspection authorities mostly inspect following Heads
1) Salary & Wages Accounts
2) Repair & Maintenance expenses
3) Building Expences
4) Mostly Other Head also as mentioned above.
They people try to serach those expenses which are booked by accounts to different GL / Heads
If any work in which manapoers are enaged by the agency , and company / PE can not show their wages & ESI contribution , they may create liability and impose.
If some points are missing , please clear it
Dear Sir,
Employee register spree scheme mar 2017 we payment made upto upto sep2017 7 months
now we have new employer esic code how transfer the contribution that spree code to current esic code
Thanking you
senguttuvan.T
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