Wages Regarding ESI

Sir,
We are having the practice of paying HRA, Education allowance and Transport allowance on monthly basis. Is this come under wages for Esi purpose and whether the contribution is paid from this?.
Medical allowance we are paying by bymonthy and LTA yearly. Whether this is wages and not deemed to be wages for Esi
Regards
Revathy

Hi Revathy,
Generally every allowance which is earning of employee, will be deemed as wages under preview of ESI Act. e.g. if we are paying washing allowance to meet the expenses of washing of his cloths, then payment of washing allowance will be against his expenses and it will be deemed as wages under ESI Act . But if we are giving Heat Allowance then ESI will apply on Heat Allowance.
If we are paying/showing LTA & Medical against expenses then LTA & Medical Allowance should not deemed as wages under ESI Act.
Regards,
Anuj Trivedi

Hi,
I am with what Ms Priya is saying. You may still get into the web site of
http://esic.nic.in/ and get more information on this.
While On the subject, I opened a new topic of CitiHr Meet in Chennai, why don't you people share your ideas of how about arranging a meet that took place in Delhi so that we can share our views and thoughts.
Pls do respond.
Sampath
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Dear Revathi,
As per the Wages Act HRA/TA/Mobile/LTA all the allowances except washing allowance should be calculated. ESI is applicable for a gross salary less than or equal to 10000 only.
Regards
Aleem

Dear Ravathy,
Whatever allowance paying on month basis, it will attract ESIC.
LTA does not attract ESIC.
The Medical allownace paying on bi-monthly basis & may on producing actual medical vourcher, means reimbursement. Then it will not attract ESI deduction or coverage.
regs
Bhushan Dahanukar