Understanding ESI Deductions: Do Conveyance Allowances Affect Calculations?

ESI Calculation Query

Hi all, good afternoon,

PLEASE SOLVE MY QUERY!!!!!

1. Do we have to deduct the conveyance allowance from the gross salary while calculating ESI? This is the GROSS SALARY of X employee:

- BASIC: 4500/-
- HRA: 3000/-
- CONVEYANCE ALLOWANCE: 1500/-
- VEHICLE MAINTENANCE ALLOWANCE: 600/-
- MEDICAL ALLOWANCE: 450/-

TOTAL GROSS SALARY: 10,050/-

What will be the ESI for the above X employee?

2. Is ESI included in CTC?

Regards,
Vikram

Employer's contribution of 4.75% can be included in CTC. You can omit the washing allowance (if uniforms are provided) and conveyance allowance from the wages deemed for contribution. Please go through the attached files.

Regards