Effective Date

Acts

Labour Law Gazette Notifications

Released Date: 8th Nov, 2021

Central

Honourable Supreme Court Judgement On ESI Contribution To Exclude Conveyance Allowance

ESIC vide circular No. T-11/13/56/02/2020 Rev.II has acknowledged to all regional and sub regional offices regarding judgement of the Hon'ble Supreme Court of India that payment of conveyance allowance as per present case does not fall under definition of term "wages" which means "all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes [any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and] other additional remuneration, if any, [paid at intervals not exceeding two months], but does not include (a) any contribution paid by the employer to any pension fund or provident fund, or under this Act ; (b) any travelling allowance or the value of any travelling concession ; (c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment ; or (d) any gratuity payable on discharge" . Therefore, concluded that conveyance allowance shall not form part of the wages of the employees and the judgement hold good with effect from 8th March 2021. Please refer to the circular and enclosed judgement for more details.

Effective Date: 8th Mar, 2021

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