Is Monthly Food Allowance for Laborers Subject to ESI Contribution? Seeking Clarity

APURBA MITRA
Dear Members, is any amount that is not fixed, if given to a laborer per month for his food/refreshment expenses, subject to ESI contribution?

Regards,
Apurb Mittra
Harsh Kumar Mehta
Your establishment must have prepared some guidelines on the basis of which such food/refreshment allowance is to be paid to the employees. If the amount is paid or payable every month and is not reimbursement of actual expenses, the same will form part of "wages" under the ESI Act, 1948. In my opinion, contribution on such amounts of allowance is payable.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute