We are a Pharmaceutical Company based in Navi Mumbai. We have medical representatives working under us all over India. Their salary + TA is greater than 15000 but we are paying them both in split. Are they eligible for ESIC payment?
From India, Mumbai
From India, Mumbai
If the TA is consolidated amount and regular, paying along with salary ( present in pay slip) & because of this the monthly salary is crossing Rs.15k then your medicla representatives are out of ESI.
In most of the organizations / in general it is based on the days / time they spent on travel and it will be re-imbursed seperately along with Travel allowance as re-imbursement then it is not part of salary hence the same amount won't attracts PF / ESI / PT & even income tax as it is reimbursement of the expenses, in this circumstances if the gross salary ie., salary according to pay slip is less then Rs.15k then they are to be covered under ESI.
Thanks and regards - kamesh
From India, Hyderabad
186In most of the organizations / in general it is based on the days / time they spent on travel and it will be re-imbursed seperately along with Travel allowance as re-imbursement then it is not part of salary hence the same amount won't attracts PF / ESI / PT & even income tax as it is reimbursement of the expenses, in this circumstances if the gross salary ie., salary according to pay slip is less then Rs.15k then they are to be covered under ESI.
Thanks and regards - kamesh
From India, Hyderabad
Thanks Kamesh for the reply.
I have a query. We pay them TA on monthly basis and the amount is fixed as per kms. We do not pay the TA amount along with salary and neither it is reflected on salary slip. Their salary is paid on 1st of every month and TA amount is reimbursed on 22nd of every month. So for calculating ESIC (slab of Rs. 15000) can we consider their gross salary + TA.
For Ex. if their gross salary is 10500 an their TA amount is 5000 then can we say that he is not eligible for ESIC?
Thanks & Regards,
Shwe
From India, Mumbai
I have a query. We pay them TA on monthly basis and the amount is fixed as per kms. We do not pay the TA amount along with salary and neither it is reflected on salary slip. Their salary is paid on 1st of every month and TA amount is reimbursed on 22nd of every month. So for calculating ESIC (slab of Rs. 15000) can we consider their gross salary + TA.
For Ex. if their gross salary is 10500 an their TA amount is 5000 then can we say that he is not eligible for ESIC?
Thanks & Regards,
Shwe
From India, Mumbai
As per the information provided by you the TA amount what you are paying is re-imbursement and it is not part of the salary or earning because you mentioned that it is based on the Kilometers they travel hence you need to consider the salary as Rs.10500/- only and calculate the ESI on gross salary.
Regards - kamesh
From India, Hyderabad
Regards - kamesh
From India, Hyderabad
Hi
if you are paying TA under reimbursement against travel reimbursement, it do not attract ESI. i feel you wanted to consider TA as one component in salary structure and looking for an exemption? if you say so, you may get away from ESI, but you need to cover them Workmen Compensation and Group personal accident policy and mediclaim insurances as welfare measure. As ESI covers from all the above, it would be good to make employees members to ESI, releived of from risk involved from seeking exemption. However, above ins cover is necessary for the employees drawing more then the ESI limit
From India, Hyderabad
if you are paying TA under reimbursement against travel reimbursement, it do not attract ESI. i feel you wanted to consider TA as one component in salary structure and looking for an exemption? if you say so, you may get away from ESI, but you need to cover them Workmen Compensation and Group personal accident policy and mediclaim insurances as welfare measure. As ESI covers from all the above, it would be good to make employees members to ESI, releived of from risk involved from seeking exemption. However, above ins cover is necessary for the employees drawing more then the ESI limit
From India, Hyderabad
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ESIC Form-Medical Expense Reimbursement.p df