Understanding ESI: Are Uniforms and Medical Expenses Covered or Reimbursable?

ESI Applicability on Uniforms and Medical Expenses

Is ESI applicable to uniforms and medical expenses or not? Kindly confirm. If not, is it necessary to have the reimbursement bill for these components?

Medical Reimbursement Under ESI Coverage

Can we provide medical reimbursement to employees as a part of their salary if they are covered under ESI?

Regards,
Arti

Dear Arti,

ESI is applicable to all allowances. ESI is not applicable to any reimbursement, but it should be on bills only. Yes, you can provide employees with medical reimbursement, but it should not be part of their salary. It should be designated for medical expenses, and you cannot consider it as a component of their salary.

Thank you.

What Mukesh stated is correct; it will not be applicable for reimbursements. You can eliminate Uniform Allowances from ESI wages if you are providing uniforms to the employees. The purchase bills for uniforms are sometimes asked for.

Regards,
S. Sethupathy
Excellent HR Services
Erode.

No, ESI is not applicable on conveyance reimbursement, but you have to keep the bills ready in this regard. However, if you include conveyance allowance with salary components, then ESI will be payable on the same.

Regards

Deduction of ESIC is only applicable on the allowances covered under salary and wages, not on reimbursement.

Thanks and regards,

Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]