‘Brakes India not liable to pay ESI contribution on conveyance allowance’
The Hindu
As per Act, wages exclude travelling allowance, company had said
The Employees Insurance Court (Principal Labour Court) has ruled that Brakes India Limited, foundry division, is not liable to pay ESI contribution on the conveyance allowance paid to its employees.
In its petition, the company had said that it was covered under the ESI Act.
As per Section 2 (22) of the ESI Act, wages include various allowances, excluding the travelling allowance or the value of any travelling concession. Hence, the company said it had not been paying the contribution on the conveyance allowance paid to its employees.
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