Amit Aishwary Choudhary
Managing People At Work.
Hr - Assistant

Dear Seniors
I would like to know -
a) ESI expmption list
b) is Mobile / Food allowance / reimbursement applicable for ESI or exempted ?
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## Food/Milk/Tiffin/Lunch Allowance
-Each case of payment of Food, Milk, Tiffin and Lunch Allowance has to be examined on its merits depending on the following conditions under which the allowance is payable:-
Tiffin/Food/Milk/Lunch Allowance paid in cash at a fixed rate irrespective of whether the person is absent or on authorized leave etc. may be treated as wages.
Tiffin/Food/Milk/Lunch allowance paid in cash with deduction for leave or absence etc. may not be treated as wages.
Tiffin/Food/Milk/Lunch allowance paid in kind i.e. canteen subsidy/food subsidy etc. may not be treated as wages.
For which reimbursement and exemption list you are talking about? Please clarify.
We wish to provide employee with Rs. 500 as Mobile allowance and Rs. 3500 as Food allowance per month.
Should we write Allowance or reimbursement - so that it does not attract ESI ..??
## As per ESIC Act 1948
“ wages ” means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes
1. any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not
illegal or layoff and other additional remuneration, if any,
2. paid at intervals not exceeding two months,
but does not include —
(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act ;
(b) any travelling allowance or the value of any travelling concession ;
(c) any sum paid to the person employed to defray special expenses entailed on him
by the nature of his employment ; or
(d) any gratuity payable on discharge
As you knows that Esic Contribution is payable on Gross Wages earned by employees.If your are going to paid Fixed Mobile Allowance per month then it come under Gross earned and its contribution will payable under ESIC Act.
## The following items will not form part of the wage either under Section 2(9) or under Section 2(22) of the ESI Act:-
-Payment made on account of un-availed leave at the time of discharge.
-Commission on advertisement secured for Newspapers, if not paid to the regular employee.
-Fuel allowance/Petrol allowance
-Entertainment allowance
-Shoes allowance
-Payment made on account of gratuity on discharge/retirement.
-Payment made on encashment of leave.
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