Clarification On ESIC

Dear Mr. Prasad,
The views given by Mr Korgaonkar is correct as per provisions. However for having correct legal wordings/ terms ,you may go to the website of ESIC wherein the ESI Act in detail can be read for all purposes.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>

Dear HR,
I am new learner , I have one confusion Plz suggest me.
If we hire any candidate (XYZ) at CTC Rs. 10Lac/Annually in which Rs.6.88Lac is Fixed Salary/annually, Rs.96000/-annually for Car Lease and Rs.2.16 Lac Annually as Reimbursement (for Fuel expenses & Car maintenance and Driver Salary).
If company taking a car on lease from third party @Rs.8000/-per month rent(Annual-96000/-)and giving to that Employee (XYZ).
Rs. 7500- For Driver salary and Rs.10500/- for Fuel Expenses & Car Maintenance Expenses .
Now If give the Reimbursement of Rs.7500/- as Driver Salary to that Employee (XYZ) thn who will be responsible to Deposit ESI contribution of Driver ?
Our Company ? That Employee (XYZ)? or No need to pay ESI Contribution by Anybody?
In case of any clarity you require on this plz let us know.
Thanks & Regards
Diwakar Jha
9582400117

1. Sir, please see the definition of term "wages" as defined in the ESI Act, 1948 and accordingly, the employer is required to deduct the amount of contribution from wages of employees.
2. The so called CTC has no relevance so far as compliance under above said Act is concerned.