The clarification may not be correct.
Washing allowance can be excluded from ESI only if Uniform is provided by the Company, wearing of Uniform is compulsory and the allowance is reasonable proportion to the total wage. For eg. if a person get 5000 Rs gross paid and is paid another 5000 as Washing allowance, ESI department will not accept this as genuine washing allowance, but only a sham arrangement to exclude 5000 from purview of payment of ESI. So be careful.:icon7:
Similarly Conveyance allowance is excluded only if it is a real reimbursement of travelling expenses. If it is a fixed amount paid to all employees irrespective of how he is traveling, it is nothing but wage, and my merely labellings it as washing allowance, it will not excluded.:x
Production incentive, if paid every month or every two month, or during shorter period will be Wage. No way it will be excluded. But pay it once six month or year, as production bonus, you can exclude. :icon10:
Meal or food allowance paid regularly in cash has to be taken into account for payment of ESI contribution. Free meal can be excluded. However reimbursement of meal payment for duty related travel can be excluded. If you provide free meal, by way of coupen with arrangement with canteen or hotel, it can be excluded. :huh:
Similary News paper and entertainment allowance has to be taken into account for payment of ESI contribution. Rarely a company will provide entertainment allowance or evben news paper allowance to employee drawing monthly salary below 10000, and if you pay it in cash, pay ESI contribution also. :-P
Rest of clarification is OK.
Washing allowance can be excluded from ESI only if Uniform is provided by the Company, wearing of Uniform is compulsory and the allowance is reasonable proportion to the total wage. For eg. if a person get 5000 Rs gross paid and is paid another 5000 as Washing allowance, ESI department will not accept this as genuine washing allowance, but only a sham arrangement to exclude 5000 from purview of payment of ESI. So be careful.:icon7:
Similarly Conveyance allowance is excluded only if it is a real reimbursement of travelling expenses. If it is a fixed amount paid to all employees irrespective of how he is traveling, it is nothing but wage, and my merely labellings it as washing allowance, it will not excluded.:x
Production incentive, if paid every month or every two month, or during shorter period will be Wage. No way it will be excluded. But pay it once six month or year, as production bonus, you can exclude. :icon10:
Meal or food allowance paid regularly in cash has to be taken into account for payment of ESI contribution. Free meal can be excluded. However reimbursement of meal payment for duty related travel can be excluded. If you provide free meal, by way of coupen with arrangement with canteen or hotel, it can be excluded. :huh:
Similary News paper and entertainment allowance has to be taken into account for payment of ESI contribution. Rarely a company will provide entertainment allowance or evben news paper allowance to employee drawing monthly salary below 10000, and if you pay it in cash, pay ESI contribution also. :-P
Rest of clarification is OK.