Hr Consultant
Founder And Mentor @ Ethical Business Strategists

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Hello Team,
I am an employee of a company,consistently taking monthly salary above 24000 for past 20 months. My basic and HRA is 20049 and remaining salary is night shift allowances. My employer is deducting ESI amount of 473. If I contact my employer he says night shift allowances are only used for ESI contribution calculation. I searched and see that it should also be considered as my salary and I should be excluded from ESI, Kindly correct me if I am wrong.
Also, kindly let me know,, how I can raise a case against employer if he is deducting wrongly ? Please help me, I feel ESI should not be deducted from my salary.
Thanks in advance.
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I have responded to your questions in two parts -
1. If night shift allowance is part of your regular business, it should be added to compute salary for the purpose of ESI
2. If your employer had been deducting ESI contribution from your salary for 20 months, then was there a reason for not asking upfront when they started doing it?
Now you can only ask your employer to refund the amount they have deducted from your salary but not force them. They money would have been deposited by them with the Department to provide you and your family an insurance and medical cover during this period, regardless of the fact whether you used it or not. You can always ask them to stop doing it in future.
night shift allowance is paid when the employee is deputed on night work,
if the regular duty is prescribed as night shift then, the employee can ask to merge the same as spl allowance,
but if the employee is working in daytime also, for some or other period, then night shift allowance is not paid,
if the daytime wages are below 21000/- gross then ESIC get applicable, and deducted even on night shift allowance also, however the employee can discuss the issue with employer to abolish the night shift allowance and alot it as special allowance, so that wages would get restructured, and he may get exit from ESIC, from april
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