ESI CONTRIBUTION
This query is : Resolved
Harikrishnan
(Querist)
23 September 2019
Please provide list of allowances which are not applicable for ESI contribution
23 September 2019
Please consider the following guidelines for deciding whether allowance is subject to ESI.
1. If the payment is made as fixed and paid on monthly basis normally it will attract ESI .
2. If the payment is made within a period of not exceeding 60 days , it will attract ESI
Generally the following allowance will not attract ESI.
1. Washing allowance
2. Subsistence allowance
3. Annual bonus
4. Incentive if periodicity of interval for payment exceeds 60 days
5. Reimbursement of expenses supported by bills and payment is paid by the employee
6. UN availed leave salary at the time of discharge
7. leave encashment
8. Fuel / Petrol allowance
9. Gratuity payment
10. Entertainment
11. Shoe allowance
Please read section 2 (9) and 2 (22) ESI act to know more details.
1. If the payment is made as fixed and paid on monthly basis normally it will attract ESI .
2. If the payment is made within a period of not exceeding 60 days , it will attract ESI
Generally the following allowance will not attract ESI.
1. Washing allowance
2. Subsistence allowance
3. Annual bonus
4. Incentive if periodicity of interval for payment exceeds 60 days
5. Reimbursement of expenses supported by bills and payment is paid by the employee
6. UN availed leave salary at the time of discharge
7. leave encashment
8. Fuel / Petrol allowance
9. Gratuity payment
10. Entertainment
11. Shoe allowance
Please read section 2 (9) and 2 (22) ESI act to know more details.
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Harikrishnan
(Querist)
03 October 2019
4. Incentive if periodicity of interval for payment exceeds 60 days
Sir, Please explain the above line with an example
Sir, Please explain the above line with an example
03 October 2019
If incentive is paid Rs.5,000/- per month for each employee whether in the salary list or paid separately on a monthly basis it will attract ESI.
But the incentive is paid Rs.10,000/- on 01.04.19 and paid another Rs.15,000/- on 03.06.19, then ESI will not attract ( as the payment was made after 60 days)
But the incentive is paid Rs.10,000/- on 01.04.19 and paid another Rs.15,000/- on 03.06.19, then ESI will not attract ( as the payment was made after 60 days)
Harikrishnan
(Querist)
10 October 2019
Thank you very much sir, many thanks for your support
If you don't busy Can you please explain the following lines with an example?
5.Reimbursement of expenses supported by bills and payment is paid by the employee
6. UN availed leave salary at the time of discharge
7. leave encashment
If you don't busy Can you please explain the following lines with an example?
5.Reimbursement of expenses supported by bills and payment is paid by the employee
6. UN availed leave salary at the time of discharge
7. leave encashment
10 October 2019
Point no : 5 : If the employee on duty to outstation , he will eligible to get reimbursement of food, lodge and train/ bus etc. If that payment is made by the employer it will not come under ESI provided all the supporting documents received from employee
Point no 6 : If salary is paid for un availed leave at the time of resignation or retirement , ESI need not be paid for the same.
Point no 7 : Companies have the policy of giving payment for un availed leave every year during the service. if payment is made for the same ESI need not be paid.
Point no 6 : If salary is paid for un availed leave at the time of resignation or retirement , ESI need not be paid for the same.
Point no 7 : Companies have the policy of giving payment for un availed leave every year during the service. if payment is made for the same ESI need not be paid.
Harikrishnan
(Querist)
14 October 2019
Thank you very much Sir, very useful and detailed reply
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