Dear All,
I want to know that conveyance should be include in ESI or not.
for ESI gross salary Conveyance is exempted or not.
we deduct ESI Contribution on Gross but exclude conveyance. Is it right or not.
Regard's
Lalit Papnoi
From India, New Delhi
I want to know that conveyance should be include in ESI or not.
for ESI gross salary Conveyance is exempted or not.
we deduct ESI Contribution on Gross but exclude conveyance. Is it right or not.
Regard's
Lalit Papnoi
From India, New Delhi
Dear Lalit,
City Conveyance allowance is also a part of one's gross salary.. so it will also be included in the ESI calculation.. as ESI depends on Gross salary...
Generally most of companies fix it @ rupees 800/- only which is exempted from taxes also..
Regards,
Amit Seth.
From India, Ahmadabad
496City Conveyance allowance is also a part of one's gross salary.. so it will also be included in the ESI calculation.. as ESI depends on Gross salary...
Generally most of companies fix it @ rupees 800/- only which is exempted from taxes also..
Regards,
Amit Seth.
From India, Ahmadabad
Dear all,
Under ESI Act Wages does not include conveyance/transport /petrol/fuel allowance.
The Employer and Employee both can exclude this from their gross wages(Gross Pay) for calculating their respective monthly contribution of 4.75% and 1.75% respectively.
But if any company have any intension of giving anyone a monthly gross salary of Rs.10005 and more to avoid the ESI Act stipulated limit of gross salary of Rs.10000/- p.m., they can do so while appointing someone in the salary range of Rs.9500/- or so of gross salary in order to avoid paying roughly around Rs.452/- to ESI as Employer contribution and roughly around Rs.152/- by the employee.
But they have to keep in mind while bifurgating that salary, If they give anyone the conveyance/transport/petrol/fuel allowance in that gross amount of Rs.10005/-, as per ESI Act whatever is the amount given as conveyance/transport/petrol/fuel will be treated as not part of wages. In that case the actual Rs.10005 will fall below Rs.10000 limit. It is better to give some other name for that allowance like special allowance, supervisory allowance etc.
Regards,
S.Kumarasubramanian
From India, Madras
Under ESI Act Wages does not include conveyance/transport /petrol/fuel allowance.
The Employer and Employee both can exclude this from their gross wages(Gross Pay) for calculating their respective monthly contribution of 4.75% and 1.75% respectively.
But if any company have any intension of giving anyone a monthly gross salary of Rs.10005 and more to avoid the ESI Act stipulated limit of gross salary of Rs.10000/- p.m., they can do so while appointing someone in the salary range of Rs.9500/- or so of gross salary in order to avoid paying roughly around Rs.452/- to ESI as Employer contribution and roughly around Rs.152/- by the employee.
But they have to keep in mind while bifurgating that salary, If they give anyone the conveyance/transport/petrol/fuel allowance in that gross amount of Rs.10005/-, as per ESI Act whatever is the amount given as conveyance/transport/petrol/fuel will be treated as not part of wages. In that case the actual Rs.10005 will fall below Rs.10000 limit. It is better to give some other name for that allowance like special allowance, supervisory allowance etc.
Regards,
S.Kumarasubramanian
From India, Madras
Hi,
That's the old story now.
But today conveyance allowance comes under the definition of wages in ESI Act.
Transport/Conveyance allowance is exempted in such a case when an employee claims it as a reimbursement. i.e. suppose I go to a place for official use using my own vehicle and claim for conveyance or transport, such expenses are out of the purview of the ESI. But, if the Conveyance allowance is a part of your CTC, it's mandatory to contribute towards ESI.
You may also refer to the local ESI office in your city.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
That's the old story now.
But today conveyance allowance comes under the definition of wages in ESI Act.
Transport/Conveyance allowance is exempted in such a case when an employee claims it as a reimbursement. i.e. suppose I go to a place for official use using my own vehicle and claim for conveyance or transport, such expenses are out of the purview of the ESI. But, if the Conveyance allowance is a part of your CTC, it's mandatory to contribute towards ESI.
You may also refer to the local ESI office in your city.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
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ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls
ESI - Allowances Rules - Salary.docx