Re: Night Allowance - ESI

Dear Syamprasad,
Yes. Please refer the directions of Madras High Court says that it is payable in pursuance of the agreement squarely falls within the definition of 'wages' (ESI Corporation, Madras V. Amalgamations Repco Limited, Madras - 1983 (2) LLJ 193)
Rajusiachen

Hi everyone,
The Night shift allowance will be considered for ESI contribution as per the Act. For any clarification please visit ESIC portal on the web for "wages".
Regards, Kosal raj.

Dear Suresh K,
There are two parts in the salary a) Daily Salary i.e basic and all allowances and b) Reimbursement.
Though washing allowance, conveyance allowance etc are paid in the monthly salary, it is a reimbursement. If an employees is not issued uniform and if there is transport facility, then you have to deduct ESI contribution.
Now night shift allowance. As per my knowledge, in many companies they have second and third shift allowance and companies are liable to deduct ESI contribution because it is an allowance that they are being paid in their monthly salary.
Regards.
Clement

My dear Cite members........

I want to clarify one thing....... that........... just by mere "NOMENCLATURE" you can escape from the payment of contribution........ the main concept of considering Washing allownce or shoe allowance etc., is due to the reason that as these allowance may be the defrayal expenses, ie. by virtue of his nature of work or environment he is supposed to maintain certain things like maintenance of uniform, shoe etc., which should been establish properly by the employer....

further all the reiumbursed allowance against the actual expenditure incurred may be exempted from the ESI.........

U can simply remember one thing that.........

all remuneration paid in cash; fixed in nature (some times it may be vary depends on the no. of days worked); whose payment periodicity will be below 2 months.............are covered under the ESI.......

all the amounts which will be paid by the employer as KIND, i.e. which will not found in the terms of agreement of service or which will be riumbursment in nature on the actual expenditure may got exemption from the ESI.........

Hope i clarified the issue.......