Is a Salary of Rs. 9,500 Plus Rs. 1,000 in Sodexo Coupons Over the ESI Ceiling?

Dear co-professionals,

When it comes to the Employee State Insurance (ESI) ceiling of Rs. 10,000, is a salary of Rs. 9,500 and Sodexo coupons of Rs. 1,000 denomination beyond this ceiling?

Awaiting your comments.

Thanks,
V Chithranath
Email: vici49@gmail.com
Phone: 9840367514

What is the purpose of clubbing ESI, which is a statutory requirement, and Sodexo, which is a benefit?

The overall goal of combining Employee State Insurance (ESI), a statutory requirement, and Sodexo, a benefit, could be to streamline and simplify the administration and management of employee benefits. By clubbing these two elements together, it may enhance efficiency, reduce administrative burdens, and provide a more comprehensive package for employees. This approach can also lead to a more integrated and cohesive benefits system within the organization, potentially improving employee satisfaction and overall well-being.

Dear Friend,

Sodexo 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 purposes.

Please see the definition of Wages under the ESI Act: Section 2(22), which states, "Wages means all remuneration paid or payable in cash to an employee..."

Mohan

Sodexo lunch coupons will be regarded as part of the salary for the purpose of arriving at the gross salary. It will be considered 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 Sodexo coupons can be added up to arrive at the gross salary.

Regards, Madhu.T.K