ESI (employees' state insurance) is applicable to all companies with more than 10 employees, and is applicable only to employees earning less than Rs 21,000 per month. The employee and employer contribution are 0.75% and 3.25% respectively.

ESI is calculated on total earnings every month (excluding any employer contribution to PF/ESI, if included in the employee's CTC).

The Supreme Court has passed an order recently (dated 8 March 2021) stating that conveyance allowance or travel allowance does not fall under the definition of ESI wages. Hence, employers have to exempt conveyance allowance from ESI contributions and for computing the ceiling limit of Rs. 21,000 per month.

This is applicable to you only if you are using custom salary structures which includes an allowance called "Conveyance Allowance".