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ESIC

Tahseen Tabassum (CA-FINAL) (644 Points)

04 May 2009

I want to know whether the Medical Allowance given to the employees were included or not while computing the gross salary for the purpose of ESI.

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2 Replies

aghila (Executive- Finance) (22 Points)
Replied 05 May 2009

Hi all,

for eligibility criteria , whether a particular employee falls in to ESI , one has to consider the fixed component of the salary.

for calculation of ESI contribution, we have to consider the entire gross amount inclusive of all allowances irrespective of it whether it is fixed allowance or variable allowance. so based on that, medical allowance has to be consider while calculating ESI