Is Conveyance Allowance Included in ESI Deductions? Seeking Clarity and Advice

satyam.hr
Dear Friends,
Would like to know from you all whether Conveyance allowance is not taken into consideration for coverage purpose in ESI i.e if employee X draws a gross salary of Rs. 10,150/- per month which also includes a conveyance allowance of Rs. 200/- as such whether since we exclude Rs. 200/- (Conveyance from Gross) it is Rs. 9950/- hence ESI is deducted.
But whether on Conveyance allowance is ESI deducted or excluded? I am confused… I hope I could convey my query to you'all.
Pls help me … I need ur opinions / advice on the above.
Pls respond…
kumaresank
"Travelling allowance" had been excluded from the definition of "wages" in the ESI Act. Conveyance allowance is nothing but a travelling allowance. So, it is not included for the purpose of calculating contributions.
malikjs
Dear,

A lot of decisions of the court have been made in this regard. Presently, conveyance allowance has to be taken into consideration for ESI, so he is to be excluded from ESI contribution.

Regards,
JS Malik
kumaresank
"reimbursed" or "fixed", it is conveyance allowance, so has to be excluded for the purpose of calculation of ESI contributions.

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Your corrected text:

"Reimbursed" or "fixed", it is a conveyance allowance, so it has to be excluded for the purpose of calculating ESI contributions.
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