I have faced a interview in which i have asked that whether medical allowance is included in gross salary and ESI deduct on medical allowance or not?
From India, Delhi
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From India, Delhi
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Hi,
I liked this question. Can you tell me the name of the Organisation, where you were invited for an interview. The question is confusing.
First, the medical allowance is usually given to an employee who is not covered under Employee State Insurance Corporation (ESIC), which means if employee drawing salary less than Rs. 10000 a month.
Thus, if the salary is less than Rs. 10000, the employee will be given benefit through ESIC, even then if the medical allowance is also given to an employee who is covered under ESIC, the ESIC (1.75%) will be deducted on medical allowance.
Usually, the medical allowance is given to employees not covered under ESIC and is part of their gross salary.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
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141I liked this question. Can you tell me the name of the Organisation, where you were invited for an interview. The question is confusing.
First, the medical allowance is usually given to an employee who is not covered under Employee State Insurance Corporation (ESIC), which means if employee drawing salary less than Rs. 10000 a month.
Thus, if the salary is less than Rs. 10000, the employee will be given benefit through ESIC, even then if the medical allowance is also given to an employee who is covered under ESIC, the ESIC (1.75%) will be deducted on medical allowance.
Usually, the medical allowance is given to employees not covered under ESIC and is part of their gross salary.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
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Hi,
There is thumb rule to decide whether an amount ( whaterver the nomenclature an organisation have for a salary heads) shall be wages u/s 2 of E.S.I. Act. or not is;
1. Any payment which is being paid to an employee with in the interval of two months shall be the wages for E.S.I. Contribution. (Whether it is bonus / Incentive / Conveyence/ any allowance whatever the nomenclature of head of salary. (Prior to April 2004 Conveyence was not the wages for E.s.I. Now if it is being paid regularly with monthly wages or with in the period of two months it comes under the purview of E.S.I. Wages)
Hope it will clarify the concept of wages u/s 2 (9) of E.S.I. for our all cite HR members.
Regards
Mohd. Arif khan
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There is thumb rule to decide whether an amount ( whaterver the nomenclature an organisation have for a salary heads) shall be wages u/s 2 of E.S.I. Act. or not is;
1. Any payment which is being paid to an employee with in the interval of two months shall be the wages for E.S.I. Contribution. (Whether it is bonus / Incentive / Conveyence/ any allowance whatever the nomenclature of head of salary. (Prior to April 2004 Conveyence was not the wages for E.s.I. Now if it is being paid regularly with monthly wages or with in the period of two months it comes under the purview of E.S.I. Wages)
Hope it will clarify the concept of wages u/s 2 (9) of E.S.I. for our all cite HR members.
Regards
Mohd. Arif khan
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1.0 ESIC is a mandatory field of payroll if the gross salary is equal to or less than 15000.
2.0 Medical allowance is an optional payment that can be decided by the company only.
3.0 Medical allowance is not part of the gross salary; it is part of CTC.
4.0 ESIC cannot be deducted from the medical allowance.
Ensure there is a single line break between paragraphs.
From India, New Delhi
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2.0 Medical allowance is an optional payment that can be decided by the company only.
3.0 Medical allowance is not part of the gross salary; it is part of CTC.
4.0 ESIC cannot be deducted from the medical allowance.
Ensure there is a single line break between paragraphs.
From India, New Delhi
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Thank you for your reply, Sumit, but my question remains unanswered. My query is whether an employee receiving ESI benefits can also receive a medical allowance. In other words, can employees earning a salary below 15K avail of the medical allowance benefit or not? Kindly provide clarification.
From India, Delhi
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From India, Delhi
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those salary is >15000/- p.m. then those employees must be excluded and be covered with insurence for medical, group and other.
From India, Ahmadabad
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From India, Ahmadabad
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What if a company is providing both ESIC and medical allowance benefit to an employee below the salary of 15K? Is this correct?
From India, Delhi
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From India, Delhi
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Employers can provide medical insurance to those ESIC-covered employees. A ESIC-covered establishment has to cover employees earning gross <=15000/-p.m. under the ESIC scheme and provide the rest with medical insurance. ESIC-covered employees will have additional medical insurance coverage, but deductions for insurance will be made from ESIC-covered employees' salaries. Both ESIC and medical insurance premiums cannot be deducted.
From India, Ahmadabad
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From India, Ahmadabad
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