Esi contribution

Poornima Y (CA) (94 Points)

26 April 2012  

A company, instead of paying house rent allowance to the employee, pays rent directly to the land lord of the house in which the employee is residing. Now should this amount is to be included for the purpose of calculating ESI?

 

In the accounts of the company, it is shown as 'rent' under administrative expenses instead of employee benefits expense.