Dear All,
1. Notwithstanding the nomenclature of the allowences,
i. if the payment is on regular intervals of less than two months 9 in the instant case, it is a monthly allowence) and
ii. paid as fixed allowence and not a variable reimbursement of defraying actual expenses as in the instant case
ESI contrubution is payable. In other words if the upkeep amount is paid at various dates on production of actual claims/ bills, the same would not attract ESI contribution.
2. As regards the queries raiesed by Dr.Shikha Sahai, notwithstanding the fact it is casual or temporary- be it Maali, cook etc. all would come under the definition of employee for the purpose of ESI Coverage and hence contribution is payable. If cooking / washing is temporary in nature, depending upon the accouting entries, ESI contribution /overage will be determined.
A.Irudayam
Advocate and HR Consultant- +91 99406 86632