So far, following the judgment passed by Hon’ble High Court of Karnataka, the conveyance allowance was considered as a part of wages and was being included for ESI contribution calculation and to arrive at salary ceiling of Rs. 21,000 per month.
Going forward, the employers have to exempt conveyance allowance from ESI contributions and for computing the ceiling limit of Rs. 21,000 per month.
However, this is subject to further appeal of EPFO before the Apex Court if any.
The highlighted points in this reported judgment copy is shared here below.