Conveyance Allowance does not fall under the definition of wages as per the ESIC Act, so it will not be deductible.
[White Eagle: ESI: On which components contribution is payable](http://kuldeeprathore.blogspot.com/2009/11/esi-on-which-compontens-contribution-is.html)
Conveyance allowance doesn't form a part of the wage as per the definition in the ESI Act. Kindly check the attachment for the judgment given by the High Court of Chennai.
As of today, all allowances except the washing allowance are included for ESI deduction. There seems to be some confusion on this matter. We recommend deducting ESI contributions from the conveyance allowance.
Regards,
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