Are Conveyance and Uniform Allowances Really Covered Under the ESIC Act? Let's Discuss

Conveyance allowance and Uniform Allowance are covered under the ESIC Act, not for covering an employee and for contribution during salary preparation.

Thanks,
Ajay Morolia

ESI is applicable if it is "Conveyance Allowance" paid as a part of salary, but not applicable in case it is reimbursed.

Please let me know if you need further clarification or assistance.

All the components of the salary that are given as a fixed component on a monthly basis are covered by the ESI. Thus, both these components would be covered.

Any allowance that is specific to employment, such as a washing allowance for liveries, is not considered part of the wages for ESI purposes. The terminology used is "sum paid to defray the special expenses entailed by the nature of employment."

Conveyance/tour expenses are reimbursements and, as such, are not ESI payable.

Regards,
Pradeep Bajaj

Sir, it is confirmed that fixed conveyance is a part of wage or salary for ESI contribution. However, I want to know from which date it may be applicable - 1st April '2002 or 1st April '2003. If someone has a copy of the notification, please send it to my email address.