Understanding ESIC Deductions: Does It Affect Transport Allowance and How Is It Different from Conveyance Allowance?

skraj2965
Dear Sir, I am an HR executive in our company. We need to know about ESIC rules on Transport Allowance and whether ESIC deducts from Transport Allowance or not. While Transport Allowance is part of wages, I currently have 210 workers, and out of those 210, 78 workers receive Transport Allowance. Please let us know if ESIC deducts from Transport Allowance or not. Additionally, could you please describe the difference between Transport Allowance and Conveyance Allowance?

Thank you.
Babu Alexander
Transport Allowance and ESI Implications
Transport allowance or conveyance allowance, if paid as reimbursement based on proper bills/vouchers periodically, will not attract ESI. However, if the transport allowance or conveyance allowance, regardless of how it is described, is paid as a fixed charge/payment on a regular monthly basis, it would attract ESI.
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