Dear Friends,
Would like to know from you all whether Conveyance allowance is not taken into consideration for coverage purpose in ESI i.e if employee X draws a gross salary of Rs. 10,150/- per month which also includes a conveyance allowance of Rs. 200/- as such whether since we exclude Rs. 200/- (Conveyance from Gross) it is Rs. 9950/- hence ESI is deducted.
But whether on Conveyance allowance is ESI deducted or excluded? I am confused… I hope I could convey my query to you'all.
Pls help me … I need ur opinions / advice on the above.
Pls respond…
From India, Mumbai
Acknowledge(0)
Amend(0)
24Would like to know from you all whether Conveyance allowance is not taken into consideration for coverage purpose in ESI i.e if employee X draws a gross salary of Rs. 10,150/- per month which also includes a conveyance allowance of Rs. 200/- as such whether since we exclude Rs. 200/- (Conveyance from Gross) it is Rs. 9950/- hence ESI is deducted.
But whether on Conveyance allowance is ESI deducted or excluded? I am confused… I hope I could convey my query to you'all.
Pls help me … I need ur opinions / advice on the above.
Pls respond…
From India, Mumbai
Acknowledge(0)Amend(0)
"Travelling allowance" had been excluded from the definition of "wages" in the ESI Act. Conveyance allowance is nothing but a travelling allowance. So, it is not included for the purpose of calculating contributions.
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
Dear lot of decision of court came in this regard,presently coveyance allowance has to taken in to consideration for ESI ,so he is to be excluded from ESI contribution. regards js malik
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI-Not-applica ble-on-Conveyan ce-Allowance.do c
ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf