ESI wages- definition, inclusions and exclusions

sreegith.n9
As per the relevant rules, a person earning less than 15000 wages is eligible for Employee State Insurance (ESI).
Could someone please help me with the definition of wages under the ESI Act- all the allowances included in wages and whether remuneration is included or not. What are the types of remuneration?

Is washing allowance is included or not?
Madhu.T.K
Under ESI wages for coverage should include all wages earned by terms of agreement. Therefore, it is the gross salary which will attract ESI. While calculating the same, any travelling expenses reimbursed shall be excluded. At the same time a payment of fixed nature as per terms of appointment to cover travelling/ conveyance will come under wages.
Washing Allowance shall also be excluded. Similarly, all payments which are made to employee in an interval of more than two months shall be excluded from salary.
Regarding overtime wages, the amount paid will not be considered for deciding eligibility or coverage of ESI whereas it will be considered for deciding the contribution. In other words, if the salary of an employee is Rs 14000 but he gets an overtime wages of Rs 1500 he will not be an excluded from ESI because his salary is less than rs 15000 (Rs 14000) but for contribution towards ESI the OT will be taken and the ESI will be contributed on Rs 15500.
Regards,
Madhu.T.K
sreegith.n9
thanks for u r reply sir.......this was really help full.....if u can do me one more favor........if u don't mind......can u tell me about the acts in Maharashtra which would be related to labour law and when it changes and what are the reasons which can change regularly and can u please attach latest acts in labour law...plzzz .....
Madhu.T.K
I have tried to incorporate almost all major Labour Laws in a PPt which is available in my blog. Since I am practicing in Kerala, I do not have that access to other state legislations. You can take information from this website where professionals from Maharashtra would help you to update your knowledge in Labour Laws.
Please follow the link to get a brief of laws for labour.
Madhu.T.K: Labour Laws in India- updated
Regards,
Madhu.T.K
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute