ESI Wages Calculation

Dear All, I have a query regarding ESI wages calculation, in our organization, we have the salary components as Basic, HRA, Transportation Allowance, Washing Allowance, & CCA, as of now we are deducting esi on gross excluding Washing allowance, now the query is there are few employee whose salary is more then Rs. 15000/- and we are not deducting esi but when i check it found that if you exclude the Washing allowance then there gross would have less then Rs. 15000/- but when I check with consultant he said you ignore this, because, if the gross salary is more then Rs. 15000/- then you need not to consider Washing allowance, and if the gross is less then Rs. 15000/- then you exclude the Washing allowance and then calculate ESi amount.
Kindly advise guys and thank you in advance.
SV

1. Sir, please clarify as to how the Washing Allowance is calculated and paid ? Whether the amount of Washing Allowance is paid to all employees irrespective whether they are provided uniforms /liveries by the establishment ?
2. What is the amount of said Washing Allowance per month per employee ?
3. Whether the amount of said Washing Allowance is paid as per policy of employer as terms and conditions of employment.

Dear Mehta Ji-1. We don't have any criteria for Washing allowance, some where we are giving 15% of gross salary, somewhere we are giving 18-20% of gross. 2) Minimum WA is Rs. 500/- & Maximum is 6800/- PM, 3) There is no policy and no terms and condition as such
Thnaks

1. Sir, kindly confirm whether uniforms / dress or liveries are supplied by employer to those employees to whom said "washing allowance" is paid or not ?
2. Kindly also confirm whether it is essential (for those employees to whom washing allowance is paid ) to wear or use such uniforms / dress or liveries on duty ?

Sir, For both points it is Yes, Employer is providing uniform to all and it is compulsory to wear the uniform

1. Sir, when you treat washing allowance as not wages for payment of contribution, then under such circumstances, your action to treat said allowance as wages only for excluding employees out of coverage seems to be not correct.
2. Therefore, in my opinion, the employees who are getting wages upto and including Rs. 15000/- after excluding amounts of washing allowance are all coverable under ESI Act, 1948 and contribution is payable. In my opinon, in order to be on safer side you may consult the area Branch Manager or Social Security Officer or concerned officer in Regional/sub/divisional Office of ESIC on the subject also.