Understanding ESI Deductions: Do Conveyance Allowances Affect Calculations?

Hi all,

Good afternoon,

PLEASE SOLVE MY QUERY!!!!!

1. Do we have to deduct 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