Sr. Hr Executive
22nd May 2017 From India, Ahmadabad
yes if the employees to whom the ESI is applicable even then you have contribute the ESI on their wages/salary irrespective of paying medical allowance/reimbursement. since it is
statutory regulation Hence cannot be avoided whereas medical allowance/reimbursement is subjected to terms of contract & discretion of employer it is not statutory allowance therefore you have to contribute the ESI irrespective of medical allowance,
Thanks & Regards
HR & Labour, Corporate Laws Advisor
22nd May 2017 From India, Agra
23rd May 2017 From India, Mumbai
While excluding the Medical allowance one should ensure that the employees right to POW are met and also adhere to MW.
23rd May 2017 From India, Ahmadabad
24th May 2017 From India, Thane
In case the employee is unable to submit the bills to that extent then the total amount paid to him shall attract deduction under Income tax rules. The component should be named as Medical reimbursement failing which it comes under regular wages and attracts both ESI & IT.
The employee even covered under ESI may not be able to go to the Dispensary for petty illness and need the treatment and to meet such expenses this medical allowance will be used hence this allowance & in general it is on reimbursement basis.
To avoid all related issues better to reimburse on submission of bills either quarterly / half-yearly / annually so all the related issues can be avoided and helpful to the employee.
24th May 2017 From India, Hyderabad