- Matinee allowance which is being paid to employees in Cinema Houses.
- Shift allowance paid to employees who work on shift duty at odd shifts.
- Location allowance paid, in addition to Dearness Allowance to meet the high house rent.
- Compensatory allowance.
- Cash handling allowance paid to Cashier.
- Supervisory Allowance.
- Additional pay paid to training staff.
- Charge allowance
- Steno/Typist allowance
- Plant allowance
- Honorarium for looking after the hospital/dispensary
- Computer allowance
- Gestetner/Photocopier/Printer allowance
- Personnel/Special allowance
- Machine allowance
- Convassing allowance
- First-aid allowance
- Personnel allowance - Pay over and above the basic wage and Dearness allowance for skill, efficiency or past good records.
- Area allowance - given to employees living in a particular area to meet the high cost of living in that area.
- Exgratia payment if payment is made within an interval of two months.
- Payment made on account of un-availed leave at the time of discharge.
- Commission on advertisement secured for Newspapers, if not paid to the regular employee.
- Fuel allowance/Petrol allowance
- Entertainment allowance
- Shoes allowance
- Payment made on account of gratuity on discharge/retirement.
- Payment made on encashment of leave.
However, overtime allowances will be considered as wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.
(Earlier instructions were issued vide memo No.Ins.III/2(2)-2/67 dt. 8.2.1967).
- Where Inam is being paid for special skill or higher responsibilities/additional duties, it may be taken as remuneration and contribution is payable.
- Where the employer has introduced the scheme of Inam but according to terms and conditions the employer has no right to withdraw it or revise it, the same may be treated as wages and contribution is payable.
- Where the employer has introduced the scheme of Inam and he has right to revise or withdraw it at his discretion, the payment of Inam under such scheme may not be treated as wages and contribution is not payable provided the payment is made at an interval exceeding two months..
- Where there is no scheme of Inam in writing but still employer might be making payment under the head Inam on the basis of some understanding between the parties, in such cases, the nature of payment and its periodicity may be ascertained and whether payment of Inam is an exgratia payment which is not covered by the contract of service. In case the periodicity is more than 2 months, no contribution may be charged.
- House Rent Allowance is wage in cases where it is being paid. Notional amount of house rent can not be presumed as wages for deciding the coverage.
- In cases where an employee is being paid house rent allowance, the same will be included both for coverage and contribution.
- In cases where the staff quarters have been allotted the amount of salary and wages paid will count for coverage and contribution and no notional house rent allowance is to be presumed in such cases.
- In the cases of Braithawait & Co. Vs. ESIC and M/s.Harihar Polyfibres Vs. ESIC, Bangalore, Supreme Court has also held that house rent allowance is a wage under Sec.2(22) of the ESI Act.
This view was observed by the Full Bench of Karnataka High Court in the case of NGEF Ltd. Vs. Dy.Regional Director, ESIC, Bangalore. Supreme Court in the case of M/s.Harihar Polyfibers Vs. RD ESIC, Bangalore has also held the same view. Hence, Night Shift Allowance, Heat, Gas & Dust allowance are wages under Sec.2(22) of the ESI Act and contribution is payable on the said amount paid by the employer to the employees.
- Fixed conveyance allowance flowing out of a wage settlement or as per terms and conditions of employment should be treated as wages under section 2(22) for all purposes except:
- Amount towards conveyance paid or reimbursed to any employee for incurring expenses for specific duty related journey
- Reimbursement of actual cost of conveyance for coming to work and going from work on production of ticket or season ticket and subject to proof of actual expenditure
- Payment of certain amount for maintenance of vehicle depending upon cadre of the official and category of vehicle and subject to production of records for actually maintaining the vehicles
- Where the amount is being paid regularly to the employees by the employer as Newspapers allowance the same will be treated as wages under Sec.2(22) of the ESI Act and the contribution is chargeable.
- However, where the cost of Newspapers is reimbursed to the employees, no contribution is to be charged on such payments.
However, where the services of the drivers are being utilised, in such event the drivers so engaged will be covered as employee and contribution will be payable on the amount paid to the drivers as salary and booked in the ledgers of the employer under the heading 'Drivers' Allowance'.
- Tiffin/Food/Milk/Lunch Allowance paid in cash at a fixed rate irrespective of whether the person is absent or on authorised leave etc. may be treated as wages.
- Tiffin/Food/Milk/Lunch allowance paid in cash with deduction for leave or absence etc. may not be treated as wages.
- Tiffin/Food/Milk/Lunch allowance paid in kind i.e. canteen subsidy/food subsidy etc. may not be treated as wages.
However, the periodicity aspect has to be kept in mind. In case the periodicity is more than 2 months, the same will not constitute wages and no contribution will be payable as in the case of incentive bonus.
However the contribution is payable on the amount paid to the coolies and hamals for services rendered within the premises of the employer.