ESI Ceiling Of Rs.10000/-. What About Sodexho Coupons

V Chithranath
ESI
Dear co-professionals,
When it comes to ESI ceiling of Rs.10000/-, is a salary of Rs.9500/- and a Sodexho coupons of Rs.1000/- denomination, beyong this ceiling??????
Awaiting your comments
Thanks
V Chithranath
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9840367514
ramram1998
what is the purpose of clubbing ESI which is a statutory requirement and Sodexho which is a benefit?
Jai1736
Dear Friend
Sodexho passes are not cash and are not redeemed by the employer. Therefore they will not be treated as a component of wages for ESI eligibility purpose.
Pl. see the definition of Wages under the ESI Act : Section 2 (22) : which says " Wages means all remuneration paid or payable in cash to an employee ------- "
Mohan
Madhu.T.K
Sodexho lunch coupons will be regarded as part of salary for the purpose of arriving at the gross salary. It will be regarded as 'additional remuneration made at intervals not exceeding two months'. This can be viewed as 'food allowance' and like HRA, Night shift allowance, Heat and dust allowance, the value of sodexho coupons can be added up to arrive at the gross salary.
Regards,
Madhu.T.K
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