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travelling allowance under ESIC

(Querist) 21 July 2009 This query is : Resolved 
I request the experts to justify with judgements,if any, whether travelling allowance paid to an employee is covered under employees' state insurance corporation. I am not clear whether to consider this or not while computing the ESI coverage.

Thanks and regards

Hariharan N
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A.R.KUPPUSAMI (Expert) 16 December 2009
Travelling allowance paid to an employee to compensate the expenses incurred by an employee on travelling. which is neither wages for the purpose of coverage of employee u/s 2(9)of ESI Act nor it is treated as wages for the payment of contribution u/s 2(22) of the ESI Actin Harihar Polyfibres Supreme Court Case decided.

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