Understanding ESIC Deductions: Will My Medical Allowance Be Affected by New Rules?

Sir, please tell me the new structure for ESIC. If the medical allowance is given to me monthly as a part of my salary package, will it be deducted as per the new rule? The components of the salary are as follows:

- Basic Salary: 6,100.00
- House Rent Allowance: 2,440.00
- Flexi Allowance: 2,440.00
- Leave Travel Allowance: 610.00
- Medical Allowance: 610.00
- Ex Gratia: 1,220.00
- Conveyance Allowance: 1,500.00

Now, I have received the deduction in May 2010, and the salary slip was as follows:

- Basic Salary: 6,100.00
- House Rent Allowance: 2,440.00
- Flexi Allowance: 2,440.00
- Leave Travel Allowance: 610.00
- Ex Gratia: 1,220.00
- Conveyance Allowance: 1,500.00

Is it okay or wrong? Please guide.

---
I have corrected the spelling, grammar, and punctuation errors in your text. I have also organized the content into paragraphs for better readability and clarity. Let me know if you need further assistance.

Dear Paharia,

If anything you are giving is a Monthly Basic, it counts as an Allowance in which ESIC is applicable. If you are providing Medical benefits on a Yearly, Quarterly, or Six-Monthly basis to employees, it will be considered a reimbursement.

Jyoti

Dear seniors,

Can you please guide me on how to post a question in a forum? I have a few doubts that can be solved through discussion.

Regards,
Nidhi

Dear Mr. Pahariya,

Your gross emoluments, including the medical allowance of Rs. 2440, work out to Rs. 14920, which is below the ceiling limit of Rs. 15,000 for the purpose of deduction of ESI contribution. If the component is "Medical Allowance," this will be added to your gross salary. If the component is "Medical reimbursement," the same is not to be added. If your Company has deducted ESI, you can ask them to stop.

Regards,
Jyoti

Dear Mr. Pahariya,

Your gross emoluments, including the medical allowance of Rs. 2440, work out to Rs. 14920, which is below the ceiling limit of Rs. 15,000 for the purpose of the deduction of ESI contribution. If the component is "Medical Allowance," this will be added to your gross salary. If the component is "Medical reimbursement," the same is not to be added. If your Company has deducted ESI, you can ask them to stop.

Regards,
Jyoti

Dear All,

Sorry for that big mistake.

Anyone having a gross salary less than 15,000 has to pay monthly towards ESI according to the new ESI rule.

Please consider this post. For Mr. Pahariya, gross is less than 15,000 so his deduction should be 1.75% of the gross salary. Furthermore, a 4.75% contribution will be given by the employer. The total amount contributed towards ESI will be 6.50%.

Thank you.