Hi,
Please confirm whether employees earning a Gross Salary below Rs.5200/- need to contribute to ESI. If the employees are not required to contribute, then please confirm whether the Employer has to contribute the entire 4%.
Also, please confirm whether ESI needs to be deducted from the Conveyance Allowance paid to employees separately.
From India, Chennai
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Please confirm whether employees earning a Gross Salary below Rs.5200/- need to contribute to ESI. If the employees are not required to contribute, then please confirm whether the Employer has to contribute the entire 4%.
Also, please confirm whether ESI needs to be deducted from the Conveyance Allowance paid to employees separately.
From India, Chennai
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Workers whose daily rate of wages is Rs. 176 or less than that need not contribute their share. However, the employer shall contribute their share (3.25%) only, meaning there is no need to pay 4%.
Conveyance allowance paid separately as reimbursement will not attract ESI. Following a Supreme Court verdict, even the traveling or conveyance allowance paid along with the salary is excluded from the salary for ESI contribution.
From India, Kannur
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4758Conveyance allowance paid separately as reimbursement will not attract ESI. Following a Supreme Court verdict, even the traveling or conveyance allowance paid along with the salary is excluded from the salary for ESI contribution.
From India, Kannur
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ESI deduction.doc
ESI Covered Employees given the option of maintaining the membership after Crossing the Celiling.pdf