Dear Seniors , Please let me know , that as employer should deduct the ESIC on Conveyance Allownce(part of the salary) or not. if yes, please share any notification on the same.
From India, Coimbatore
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8From India, Coimbatore
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the esi will be on gross as every per esic act 1948 which includes all allowance.. regds
From India, Hyderabad
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From India, Hyderabad
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The Conveyance Allowance paid regularly without consideration of any actual expenses is a part of wages under section 2(22) of the Employees' State Insurance Act, 1948, and contribution on the same is payable as a part of wages.
However, Conveyance Charges on an actual basis paid separately (viz. by vouchers) in order to defray special expenses incurred for any travel/journey is not part of wages, and no contribution on the same, in my opinion, is payable.
There appears to be no separate notification for the same since it is laid down in the above Act. However, in case of any doubt, I suggest you take up the matter with the appropriate Regional/Sub-Regional Office of ESIC in your area indicating your ESI Code No. as well.
Regards;
From India, Noida
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However, Conveyance Charges on an actual basis paid separately (viz. by vouchers) in order to defray special expenses incurred for any travel/journey is not part of wages, and no contribution on the same, in my opinion, is payable.
There appears to be no separate notification for the same since it is laid down in the above Act. However, in case of any doubt, I suggest you take up the matter with the appropriate Regional/Sub-Regional Office of ESIC in your area indicating your ESI Code No. as well.
Regards;
From India, Noida
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Judicial Rulings on Conveyance Allowance and Wages
The Hon'ble Supreme Court in ESIC, Madras v. Sundaram Clayton Ltd (Mopeds Division), reported in 2004 (1) LLN 630, held that conveyance allowance shall not form part of wages. The Madras High Court also categorically ruled out in its latest judgment in W.A. 936 of 2011, decided on 30.6.2011 (ESIC Chennai v. Cosmopolitan Club), that conveyance allowance shall not form part of wages. The exclusion clause in Sec. 2(22) of the ESI Act clearly excludes any traveling allowance or the value of any traveling concession. Despite the above judicial ratio, the ESIC, taking advantage of an earlier Karnataka High Court judgment, is including conveyance allowance/traveling allowance as wages.
Regards,
S. Sankaralingam
Retd. Sr. Dy. Director, ESIC
Advocate & Labour Law Advisor
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Chennai
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The Hon'ble Supreme Court in ESIC, Madras v. Sundaram Clayton Ltd (Mopeds Division), reported in 2004 (1) LLN 630, held that conveyance allowance shall not form part of wages. The Madras High Court also categorically ruled out in its latest judgment in W.A. 936 of 2011, decided on 30.6.2011 (ESIC Chennai v. Cosmopolitan Club), that conveyance allowance shall not form part of wages. The exclusion clause in Sec. 2(22) of the ESI Act clearly excludes any traveling allowance or the value of any traveling concession. Despite the above judicial ratio, the ESIC, taking advantage of an earlier Karnataka High Court judgment, is including conveyance allowance/traveling allowance as wages.
Regards,
S. Sankaralingam
Retd. Sr. Dy. Director, ESIC
Advocate & Labour Law Advisor
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Chennai
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SELF-CERTIFICAT E PROFORMA UNNDER THE MINIMUM WAGES ACT, 1948.doc
ESIC Act 1948.ppt