Is Conveyance Allowance Part of ESI Wages? Seeking Clarity After Court Ruling

Clarification on ESI Conveyance Allowance

There is confusion regarding the topic of ESI Conveyance Allowance, specifically whether the conveyance allowance is included or not. It is well known that there was a judgment by the Madras High Court on 17-09-2009 (see the attachment) stating that the conveyance allowance is not part of wages. Following this judgment, has ESI issued any amendments?

Regards,
PBS KUMAR

In this judgment, the third point is very clear that the conveyance allowance is not part of the wages for ESI calculation. There is no further amendment in this regard. Hope this clears things up.

Regards,
Eswar.K

Just to add information, ESIC has approved the payment of conveyance allowance to be paid to IPs (Insured Persons) at Rs. 100 per visit for the submission of Life Certificates in PDB cases as per the latest amendments.

Dear Sh. Kumar, Greetings for the day. It is noted in the judgment that ESIC contribution is applicable to all those components of wages which are fixed, including overtime. However, as far as reimbursement (conveyance) is concerned, ESIC is not applicable to the same.

Thanks & Regards, Sumit Kumar Saxena