Dear Mr. Sharma (Apex Management),
You are misunderstanding me; please try to understand where I am stressing. I know very well the provisions of LAWS. However, what you are failing to understand is the practical implementation of laws in the case of IT/Software/ITES. I can't use strategies of the FMCG domain in a software company. But this does not mean statutory compliances are different for different industries.
"See, I know very well the life in the IT/ITES sector, and I wish to join this sector as an HR Manager with priority. Though as per ESI, 1.75% of Basic + DA should be paid by the employee and 4.75% by the employer. Though the ceiling may change from INR 6500 to INR 15000, which means for a larger section of employees, now ESIC will become mandatory."
I have used 'ceiling may change from INR 6500 to INR 15000' because there is a reason. FYI, soon the ESI ACT will be revised, and the remuneration/salary/wage ceiling will change from INR 15000 to INR 25000. We are waiting for the official gazette. The Ministry is considering this, and soon this might happen. It is assumed that you know all these. Refer to my attachment for more information.
Please refer to the attachment so that I can make you understand the practical situation. Now, please don't say I have practiced drawings/color crafting after referring to the attachment. Colors have been changed to highlight and stress some important words/phrases, which I can't do normally here.
Thanks and Regards,
Sovik B
From India, Mumbai
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53You are misunderstanding me; please try to understand where I am stressing. I know very well the provisions of LAWS. However, what you are failing to understand is the practical implementation of laws in the case of IT/Software/ITES. I can't use strategies of the FMCG domain in a software company. But this does not mean statutory compliances are different for different industries.
"See, I know very well the life in the IT/ITES sector, and I wish to join this sector as an HR Manager with priority. Though as per ESI, 1.75% of Basic + DA should be paid by the employee and 4.75% by the employer. Though the ceiling may change from INR 6500 to INR 15000, which means for a larger section of employees, now ESIC will become mandatory."
I have used 'ceiling may change from INR 6500 to INR 15000' because there is a reason. FYI, soon the ESI ACT will be revised, and the remuneration/salary/wage ceiling will change from INR 15000 to INR 25000. We are waiting for the official gazette. The Ministry is considering this, and soon this might happen. It is assumed that you know all these. Refer to my attachment for more information.
Please refer to the attachment so that I can make you understand the practical situation. Now, please don't say I have practiced drawings/color crafting after referring to the attachment. Colors have been changed to highlight and stress some important words/phrases, which I can't do normally here.
Thanks and Regards,
Sovik B
From India, Mumbai
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One more piece of good news: Mr. Sharma (Apex Management), the Ministry is also considering simplifying labor laws. As mentioned earlier, the current central government is following a linearization policy. Therefore, it may soon be possible that labor laws will be revised. Additionally, I have also heard from a reliable source that one single act might be published, encompassing miscellaneous provisions. This means it will incorporate all the features of labor laws, benefiting not only employees but also employers.
Regards,
Sovik B
From India, Mumbai
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Regards,
Sovik B
From India, Mumbai
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Hi,
I received a question via private email, asking how Basic + DA > 15000, as shown in the attachment, the remuneration amount will lie between 30,000 - 50,000 per month.
The answer is: It cannot be forecasted, but if we view the proposed changes and keep in mind the best market practices, corporate taxes, and salary/remuneration breakups, then generally Basic + DA > 15000 would result in a monthly remuneration of INR 30,000 - 50,000.
For calculation purposes at this moment, if we need to discuss whether ESI or Mediclaim is better or not, then it's better to consider Basic + DA instead of Remuneration. This is because the proposed changes, which were supposed to be effective from April 1, 2014, include:
1. PF ceiling will increase from INR 6500 to INR 15000 - here salary ceiling means Basic + DA.
2. ESI ceiling would increase from INR 15000 to INR 25000 - Here the salary's meaning is provided by Sec 2(22) of the ESI Act, 1948.
Reference link: [Government 'seriously considering' of raising wage ceiling of ESI and PF: Minister - The Economic Times](http://economictimes.indiatimes.com/wealth/savings-centre/savings-news/government-seriously-considering-of-raising-wage-ceiling-of-esi-and-pf-minister/articleshow/19476847.cms?intenttarget=no)
Again, a strategic discussion like this should include both current statutes and possible changes in future statutes in a harmonious way. The benefit of this would be that the suggested plan would consider the effect of future changes in statutes too.
Thus, if my ESI bucket included:
a. Basic + DA <= 15000, then ESI should be mandated. This would automatically meet my ESI Act, 1948 requirements along with the proposed changes stated above, as the monthly remuneration will lie between INR 30,000.
b. Basic + DA > 15000, then this case does not come under ESI, but medical cum insurance (Individually/jointly funded) will reduce both corporate tax and income tax of the employee. This means that the facilities of ESI will be there, plus there are chances of sum assured and tax savings, which ESI cannot provide individually.
But it's still better to wait with patience. And yes, apologies for the mistake in the previous attachment, so this correction is now accurate.
Thank you.
From India, Mumbai
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I received a question via private email, asking how Basic + DA > 15000, as shown in the attachment, the remuneration amount will lie between 30,000 - 50,000 per month.
The answer is: It cannot be forecasted, but if we view the proposed changes and keep in mind the best market practices, corporate taxes, and salary/remuneration breakups, then generally Basic + DA > 15000 would result in a monthly remuneration of INR 30,000 - 50,000.
For calculation purposes at this moment, if we need to discuss whether ESI or Mediclaim is better or not, then it's better to consider Basic + DA instead of Remuneration. This is because the proposed changes, which were supposed to be effective from April 1, 2014, include:
1. PF ceiling will increase from INR 6500 to INR 15000 - here salary ceiling means Basic + DA.
2. ESI ceiling would increase from INR 15000 to INR 25000 - Here the salary's meaning is provided by Sec 2(22) of the ESI Act, 1948.
Reference link: [Government 'seriously considering' of raising wage ceiling of ESI and PF: Minister - The Economic Times](http://economictimes.indiatimes.com/wealth/savings-centre/savings-news/government-seriously-considering-of-raising-wage-ceiling-of-esi-and-pf-minister/articleshow/19476847.cms?intenttarget=no)
Again, a strategic discussion like this should include both current statutes and possible changes in future statutes in a harmonious way. The benefit of this would be that the suggested plan would consider the effect of future changes in statutes too.
Thus, if my ESI bucket included:
a. Basic + DA <= 15000, then ESI should be mandated. This would automatically meet my ESI Act, 1948 requirements along with the proposed changes stated above, as the monthly remuneration will lie between INR 30,000.
b. Basic + DA > 15000, then this case does not come under ESI, but medical cum insurance (Individually/jointly funded) will reduce both corporate tax and income tax of the employee. This means that the facilities of ESI will be there, plus there are chances of sum assured and tax savings, which ESI cannot provide individually.
But it's still better to wait with patience. And yes, apologies for the mistake in the previous attachment, so this correction is now accurate.
Thank you.
From India, Mumbai
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Hi,
This is Srinivas from emp-care. I welcome the opportunity to talk with you to discuss your particular insurance needs and the comprehensive, cost-saving insurance plans that we offer. For more details, please email me at srinivas.k@emp-care.com or call 09025626868.
Thank you.
From India, Bangalore
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This is Srinivas from emp-care. I welcome the opportunity to talk with you to discuss your particular insurance needs and the comprehensive, cost-saving insurance plans that we offer. For more details, please email me at srinivas.k@emp-care.com or call 09025626868.
Thank you.
From India, Bangalore
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Mr. Srinivas,
Hope my professional friend who posted this question will consult with you. But only one request, if any professional HR consults with you regarding this kind of insurance, please suggest those plans which provide sum assured, mediclaim, and tax savings.
Due to my profession, I know a few of such policies, but still, it's a request if you can cite some examples with features. I hope many HR professionals would be able to understand the importance and difference.
Though I am not from an insurance background, I understand the psychology of HRs and Senior Managers. It's like even if they are not aware of precise details, they simply don't want to gather information and thereby lose the opportunity of cost savings and better employee engagement just by thinking, 'All people are salesmen who wish to take away their money.'
A few of such plans and proposals, with detailed plans, will help the industry leaders to widen their narrow minds. Even in my career, I have heard this kind of weird comments, like, 'You are a 26-year-old guy, what do you know about business/accounts/HRM?' 'You don't have experience,' and the most recent weird comment is 'We require your DIN number in order to consider your capabilities for the post of AM in a software company - Hilarious, may god bless India and such kind of HR professionals, senior management, Directors!
Regards,
Sovik B
From India, Mumbai
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Hope my professional friend who posted this question will consult with you. But only one request, if any professional HR consults with you regarding this kind of insurance, please suggest those plans which provide sum assured, mediclaim, and tax savings.
Due to my profession, I know a few of such policies, but still, it's a request if you can cite some examples with features. I hope many HR professionals would be able to understand the importance and difference.
Though I am not from an insurance background, I understand the psychology of HRs and Senior Managers. It's like even if they are not aware of precise details, they simply don't want to gather information and thereby lose the opportunity of cost savings and better employee engagement just by thinking, 'All people are salesmen who wish to take away their money.'
A few of such plans and proposals, with detailed plans, will help the industry leaders to widen their narrow minds. Even in my career, I have heard this kind of weird comments, like, 'You are a 26-year-old guy, what do you know about business/accounts/HRM?' 'You don't have experience,' and the most recent weird comment is 'We require your DIN number in order to consider your capabilities for the post of AM in a software company - Hilarious, may god bless India and such kind of HR professionals, senior management, Directors!
Regards,
Sovik B
From India, Mumbai
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Dear Shovik & Mr. Sharma,
In reference to the above discussion, somewhere we have missed the track for discussion and influencing our own thoughts, instead of sharing knowledge. However, enough subject matter knowledge has been shared. Thanks for the valuable inputs.
Regards, Hrishikesh
From India, Ropar
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In reference to the above discussion, somewhere we have missed the track for discussion and influencing our own thoughts, instead of sharing knowledge. However, enough subject matter knowledge has been shared. Thanks for the valuable inputs.
Regards, Hrishikesh
From India, Ropar
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Hi members,
This platform is for sharing knowledge through personal experience. Personal experience is a unique mixture of knowledge and individual perceptions in problem-solving within critical situations. One cannot separate knowledge and perceptions (thoughts) to determine which one is correct. Handling the human mind is different from handling a technical machine. Therefore, a human touch is necessary to calm the situation.
From India, Visakhapatnam
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This platform is for sharing knowledge through personal experience. Personal experience is a unique mixture of knowledge and individual perceptions in problem-solving within critical situations. One cannot separate knowledge and perceptions (thoughts) to determine which one is correct. Handling the human mind is different from handling a technical machine. Therefore, a human touch is necessary to calm the situation.
From India, Visakhapatnam
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Dear all,
He asked about the advantages and disadvantages in ESI and Mediclaim. After going through all the answers, I am a little bit confused. First, please note that we can't compare them with each other. Both schemes are important and required for employees.
Everyone is saying that ESI is provided to those whose gross salary is less than Rs. 15,001. However, ESI will first be applicable based on the geographical area. If the area where you are working is not covered under ESI, even if you are earning less than Rs. 15,000 in salary/wages, you will not be covered under the ESI Act. In this situation, you have to be covered under the Employee Compensation Act.
ESI is statutory, while mediclaim is a facility. ESI is for social security, whereas mediclaim is a benefit. ESI coverage is when you are on duty, whereas mediclaim covers you 24 hours. ESI provides a pension for deceased IP, while mediclaim offers medical assistance only.
There are several advantages and disadvantages in both, which I have shared a few of.
Thanks,
V K Rao
From India, Guntur
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He asked about the advantages and disadvantages in ESI and Mediclaim. After going through all the answers, I am a little bit confused. First, please note that we can't compare them with each other. Both schemes are important and required for employees.
Everyone is saying that ESI is provided to those whose gross salary is less than Rs. 15,001. However, ESI will first be applicable based on the geographical area. If the area where you are working is not covered under ESI, even if you are earning less than Rs. 15,000 in salary/wages, you will not be covered under the ESI Act. In this situation, you have to be covered under the Employee Compensation Act.
ESI is statutory, while mediclaim is a facility. ESI is for social security, whereas mediclaim is a benefit. ESI coverage is when you are on duty, whereas mediclaim covers you 24 hours. ESI provides a pension for deceased IP, while mediclaim offers medical assistance only.
There are several advantages and disadvantages in both, which I have shared a few of.
Thanks,
V K Rao
From India, Guntur
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Hi sir/madam, this is Srikanth. I am working in a company, and they have assigned me a project. The project revolves around the question, "Why are employees not utilizing ESI hospitals and instead opting for private hospitals?" This is the essence of my project summary. Please evaluate which topic aligns with this summary and suggest where I can gather relevant data. Your prompt assistance is greatly appreciated. Thank you.
From India, Bangalore
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From India, Bangalore
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02 Qms Advantages .doc