Sir, thank you for this. We have the following components as part of our Fixed Gross Salary: BASIC, HRA, SPECIAL ALLOWANCE, CONVEYANCE, PERSONAL ALLOWANCE, and MEASURED ALLOWANCE. Conveyance is fixed at Rs. 800 per month. Can we consider all these components as wages for ESIC eligibility?
From India, Mumbai
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From India, Mumbai
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Dear Friend,
ESI will be deducted from the monthly gross salary. If an employee's gross salary exceeds Rs. 15,000, ESI will be applicable as per the ESI Act from May 2010, earlier it was Rs. 10,000. If the above-mentioned breakdown is paid monthly, and if the total is Rs. 15,000 or more, ESI is applicable.
From India, Hyderabad
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86ESI will be deducted from the monthly gross salary. If an employee's gross salary exceeds Rs. 15,000, ESI will be applicable as per the ESI Act from May 2010, earlier it was Rs. 10,000. If the above-mentioned breakdown is paid monthly, and if the total is Rs. 15,000 or more, ESI is applicable.
From India, Hyderabad
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Dear all, I wanted to know what are the salary components applicable to esi contribution as well not applicable components. pls guide on this with provision. Regards Kasim - Bangalore 9686317494
From India, Bangalore
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From India, Bangalore
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Within the wage limits of Rs 15,000/-, almost all the allowances are considered wages under ESIC. Typically, if any allowance is paid to an employee for more than two consecutive months, it becomes a regular salary component, and ESIC is applicable on the same.
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From India, Mumbai
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From India, Mumbai
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Hi,
Definition of wages under the ESI Act
Under the ESI Act, the definition of wages is defined under Section 2 (22): "Wages" means all remuneration paid or payable to an employee if the terms of the contract of employment, express or implied, were fulfilled. It includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal, or layoff, and other additional remuneration, if any, paid at intervals not exceeding two months. However, it does not include:
a) Any contribution paid by the employer to any pension fund or provident fund or under this Act,
b) Any traveling allowance or the value of any traveling concession,
c) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment, or
d) Any gratuity payable on discharge.
Accordingly, any amount payable to an employee who is covered under the Act is considered wages except for those mentioned in the exceptions above. However, any conveyance allowance or travel allowance is exempted from coverage. Similarly, the washing allowance is also exempted from coverage under the Act.
Current ESI coverage ceiling
The present ceiling for ESI coverage is Rs. 21,000/-, which is likely to be revised to a higher amount shortly.
From India, Chennai
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Definition of wages under the ESI Act
Under the ESI Act, the definition of wages is defined under Section 2 (22): "Wages" means all remuneration paid or payable to an employee if the terms of the contract of employment, express or implied, were fulfilled. It includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal, or layoff, and other additional remuneration, if any, paid at intervals not exceeding two months. However, it does not include:
a) Any contribution paid by the employer to any pension fund or provident fund or under this Act,
b) Any traveling allowance or the value of any traveling concession,
c) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment, or
d) Any gratuity payable on discharge.
Accordingly, any amount payable to an employee who is covered under the Act is considered wages except for those mentioned in the exceptions above. However, any conveyance allowance or travel allowance is exempted from coverage. Similarly, the washing allowance is also exempted from coverage under the Act.
Current ESI coverage ceiling
The present ceiling for ESI coverage is Rs. 21,000/-, which is likely to be revised to a higher amount shortly.
From India, Chennai
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