I AM BHARATH.J
I have doubt in Esi exemption can any one help me……. Its urgent for me
The query is below
In our concern we going to give increment to our employees, as in a regular concept the increment is applicable to pf and esi….. But my higher officials feel, increasing pf its fine but increasing the esi is necessary because already we are paying esi for some amount then why should we increase it because less people only going to esi others are for name shake they having the esi…
For example,
Mr. X - current salary is 150 per day/ 3900 monthly ( 26 days )
Mr. x – current basic is 2600 and allow is 1300
Mr. x – pf amount is 312/- and esi amount is 69/-
We plan to increase 100/- rs per day
Question is, whether we can exclude this 100/- in esi, if any exemption is there for allowance.
Kindly guide me please….
BHARATH. J
9159151900

From India, Tiruppur
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Hi Bharath There is no other option. You should increase even the ESI contribution. I donno on which grounds you are trying to exempt.
From India, Bangalore
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Hi,
You can definitely opt for an exemption for ESIC payment by putting the enhanced amount of Rs.100 as "Washing Allowance".But prior to that make sure that the previous wage rate of Rs.150/day is at per or over the Minimum Wages notification as per the scheduled employment in the type of establishment your organization falls to as per the state concerned.
If no then adjust the part of Rs.100,firstly,to adhere to the said provision and then for the balance amount put it as "Washing Allowance" which shall be exempted of ESIC Contribution.(both side-Employee & Employer)

From India, Chandigarh
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Hi P. Jeeva Sir,

Thank you for your reply.

I have heard that in ESI, washing allowance is exempted from ESI contribution. Are there any other allowances exempted in ESI? My higher officials have mentioned that laborers are more interested in PF contribution rather than ESI deduction. Therefore, we are considering keeping their salary as is and making a minimal contribution to ESI as they expect.

Are there any other allowances in ESI similar to washing allowance? Please advise me on this.

Thank you.

From India, Tiruppur
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Thank you for your reply, Mr. Arnab Dasgupta, sir.

For our concern, the minimum wage is 140 (Basic+DA) as fixed by our state government. However, we are already paying a higher amount of 150 per day. If we consider a washing allowance, is it possible to provide it monthly or annually? Since we do not provide uniforms for laborers, how can we show the washing allowance? Could you please advise on how to include the washing allowance in the muster roll? Do we need to create a separate register for this purpose? Also, do we need any official documents from ESI regarding this washing allowance?

From India, Tiruppur
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From India, Chandigarh
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