Washing Allowances and ESI Act: Are Uniform-Related Allowances Exempt?

Is washing allowances exempted under ESI Act where a uniform has been provided by the company? If yes, what is the limit of the allowances? Is there any notification/circular issued by the ESI in this regard? Please share.

Regards, Surendra Singh Rawat.

Dear Sir,

If you are paying it as a salary, which I think you are, then it contributes to the gross salary and is therefore included.

The act says if washing allowance is paid to 'defray' (loosely meaning the cost of washing), it is not ESI wages. So you decide. It is felt that if a washing allowance of, say, Rs. 10 is paid for a day worked, then it may be okay. Even Rs. 15 will be okay, I guess. But any allowance beyond Rs. 15 cannot be justified to compensate for the cost of washing if questioned by authorities.

This information (not the allowance amount) is available on the ESI portal under FAQ. Aniket Pathak, please note.

Washing Allowance shall be taken into consideration for ESI eligibility, i.e., 15000 gross salary, but no ESI shall be deducted on Washing Allowance. It's not wages under the ESI Act.