Dear Members, In Jan 2020, I started my own startup registered as a private company. Last month, I onboarded a new employee to handle my on-field operations and business development as well. Now I wish to get insurance for this new recruit, since he is on road, traveling on his bike most of the time looking for potential clients. I care about his precious health and life.
I have some question regarding this.
1. Can someone please guide me how should I take insurance for him?
2. How should I add this insurance cost in CTC?
3. Is ESIC applicable to my business?
4. If not applicable, can I voluntarily apply to ESIC?
From India, Pune
I have some question regarding this.
1. Can someone please guide me how should I take insurance for him?
2. How should I add this insurance cost in CTC?
3. Is ESIC applicable to my business?
4. If not applicable, can I voluntarily apply to ESIC?
From India, Pune
First of all what is your business type.
Second all employees need to be covered under esic if salary up to 21k.
Additional health insurance can be taken.
Connect
.
Consulting for statutory compliance for aervices industry.
From India, Vadodara
365Second all employees need to be covered under esic if salary up to 21k.
Additional health insurance can be taken.
Connect
Consulting for statutory compliance for aervices industry.
From India, Vadodara
Dear Devendra,
Here are my views:
1. Can someone please guide me how should I take an insurance for him?-- You may approach TPA's (easily available on google). They will guide you best suited plan basis the strength and nature of your company.
2. How should I add this insurance cost in CTC? Whatever the appox. annual premium , you may enter as "Deffered Benefits" in CTC struc . However it would attract employees if you provide over & above ctc (being a new start up)
3. Is ESIC applicable to my business? Yes, if it's 10 or more employees whose wage limit(monthly gross) is less than or equal to 21,000/-
4. If not applicable, can I voluntarily apply to ESIC? It's a statutory payment and needs to be strictly followed as per the applicability & eligibility.
Pl note: If employees covered under ESIC, than additional medical insurance not required for them. However voluntarily you may do so... Upto you!...
All the best for your new beginning..
Regards
Piyush
From India, Pune
Here are my views:
1. Can someone please guide me how should I take an insurance for him?-- You may approach TPA's (easily available on google). They will guide you best suited plan basis the strength and nature of your company.
2. How should I add this insurance cost in CTC? Whatever the appox. annual premium , you may enter as "Deffered Benefits" in CTC struc . However it would attract employees if you provide over & above ctc (being a new start up)
3. Is ESIC applicable to my business? Yes, if it's 10 or more employees whose wage limit(monthly gross) is less than or equal to 21,000/-
4. If not applicable, can I voluntarily apply to ESIC? It's a statutory payment and needs to be strictly followed as per the applicability & eligibility.
Pl note: If employees covered under ESIC, than additional medical insurance not required for them. However voluntarily you may do so... Upto you!...
All the best for your new beginning..
Regards
Piyush
From India, Pune
Dear members,
Thank you for your contributions and kind advice. I would like to clear some doubts.
1. My startup is a private company registered under Startup India
2. I have 3 employees only (2 owners including me, and 1 new recruit). New recruit gets approx 35K gross salary per month
4. Since there are less employees, I feel ESIC is not applicable to me.
5. Can someone please guide which other statutory compliance acts are applicable to my startup right now?
Regards!
From India, Pune
Thank you for your contributions and kind advice. I would like to clear some doubts.
1. My startup is a private company registered under Startup India
2. I have 3 employees only (2 owners including me, and 1 new recruit). New recruit gets approx 35K gross salary per month
4. Since there are less employees, I feel ESIC is not applicable to me.
5. Can someone please guide which other statutory compliance acts are applicable to my startup right now?
Regards!
From India, Pune
Dear Devendra,
At the moment you are not covered under PF or ESI Acts and you are also paying the salary more than Minimum Wages Act.
Please check your coverage under The Professional Tax.
Currently the best options to provide him Social Security / Welfare are as under:
1. PPF: Open Public Provident Fund Account for him and put Rs.1800/- to his account towards employer's contribution to PF till you organisation comes under the purview of ESI PF Acts. This is statutory limit @12% on maximum coverage ceiling of INR 15000/-. (This is suggested because you have shown your concern to extend the benefit). This amount of course you can consider as a part of CTC.
2. Since the employee required to travel a lot cover him under Group Personal Accident Policy for Minimum 5L.
3. Also cover him under Term Life Insurance for 10L. (Under the Employees' Compensation Act the compensation payable to an employee/workman for fatal accident is Rs.16,97,850/- if the employee's age is 18 yrs and salary is Rs.15,000/- per month) Here you can discuss with the employee and come to the conclusion, how much % of premium you will bear and the employee. 50:50 or 75:25 least is for employee.
Hope this temporary arrangement will fulfill your requirement, till the time your organisation is covered under the respective Acts.
Thanks & Regards with Best Wishes,
May God give you all success in your Good Karma.
Suresh
From India, Thane
At the moment you are not covered under PF or ESI Acts and you are also paying the salary more than Minimum Wages Act.
Please check your coverage under The Professional Tax.
Currently the best options to provide him Social Security / Welfare are as under:
1. PPF: Open Public Provident Fund Account for him and put Rs.1800/- to his account towards employer's contribution to PF till you organisation comes under the purview of ESI PF Acts. This is statutory limit @12% on maximum coverage ceiling of INR 15000/-. (This is suggested because you have shown your concern to extend the benefit). This amount of course you can consider as a part of CTC.
2. Since the employee required to travel a lot cover him under Group Personal Accident Policy for Minimum 5L.
3. Also cover him under Term Life Insurance for 10L. (Under the Employees' Compensation Act the compensation payable to an employee/workman for fatal accident is Rs.16,97,850/- if the employee's age is 18 yrs and salary is Rs.15,000/- per month) Here you can discuss with the employee and come to the conclusion, how much % of premium you will bear and the employee. 50:50 or 75:25 least is for employee.
Hope this temporary arrangement will fulfill your requirement, till the time your organisation is covered under the respective Acts.
Thanks & Regards with Best Wishes,
May God give you all success in your Good Karma.
Suresh
From India, Thane
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.