Understanding Gross Salary Components: Does Washing Allowance Count for ESI?

Components of Gross Salary

Kindly suggest to me what components come under Gross Salary, such as Basic, HRA, DA, Other Allowance, Travel Allowance, etc. Are these enough, or will more components be included?

Washing Allowance and ESI Bracket

I would like to know if the washing allowance is considered part of the gross salary so that it falls under the ESI bracket. Also, what components come under the ESI Bracket?

Thanks & Regards,
NaVeen

Recently, I attended an interview at a pharmaceutical company where they asked me about the uniform washing allowance. I would like to understand what components are included in the Gross Salary as we calculate ESI based on the Gross.

Thanks & Regards,
NaVeen

Washing Allowance and ESI Eligibility

Washing allowance shall be taken into consideration for ESI eligibility, i.e., a gross salary of 15,000. However, no ESI shall be deducted on the washing allowance as it's not considered wages under the ESI Act.

Regards,
Vikram Singh
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]

Thank you for the information. Please clarify whether the washing allowance is calculated on a monthly basis among the gross amount, in which case it will fall under the ESIC bracket. If we calculate it on a bimonthly or quarterly basis, it will not attract ESIC.

Thank you,

Nilanjana

Washing Allowance and ESI Considerations

Washing allowance is part of the gross pay. If given to uniformed staff, it is excluded from ESI. However, if given to non-uniformed staff, it is chargeable. The washing allowance is calculated based on the number of uniform sets provided.

Any payout made bi-monthly, quarterly, or annually could attract PF and ESI. This is determined by the authority that inspects PF and ESI records. The basic consideration is the P&L statement and trading account of the company. Anything that is booked as salary and wages attracts PF and ESI.

If any company has an agreement with the union to provide uniforms to employees, then the washing allowance does not count towards ESI wages. Otherwise, the washing allowance is included in the ESI wages.

Regards,
Ramesh Dudeja

Washing Allowance and ESIC Compliance

Please note: Washing Allowance does not attract ESIC as per Sec. 2 (22)(C). If you have any queries, please call me at [Phone Number Removed For Privacy Reasons].

Regards

Can you please suggest if there is any limit on the washing allowance?

Subject: Washing Allowance - ESI Applicability

Hi,

I would like to inquire whether the Washing Allowance is subject to ESI. Your guidance on this matter would be greatly appreciated.

Regards,
V. Umesha
7829928226

Washing Allowance is specifically excluded by ESIC from contribution, provided the said allowance really meets the intended purpose.

As clarified in the previous message, ESI is not applicable to Washing Allowance if the Management has provided a Uniform to the Staff for whom Uniform Allowance is paid.

In the absence of the provision of a Uniform facility and if you are paying Washing Allowance, then ESI becomes payable on the Washing Allowance. It's a settled law.

Washing Allowance shall not attract ESIC contribution as per Section 2(22)(c). It's a defray special expense. There is no such limit given under any statute or gazette to date.

Read more about ESIC Wages at: https://boardhr.blogspot.com/2017/04...sic-wages.html