Dear Seniors,
I need an advise from you. We have a policy in our organisation. If the employee is under ESI limit, medical allowance will be paid 2400/- per annum. If the employee is not covered under ESI, he will be paid one basic per annum. Accordingly we have given appointment letters to all the employees. But as per new enhanced ESI ceiling, 6 employees are being covered under ESI. But in their CTC, medical allowance i.e.one basic is included. Since the ESI is increased, medical allowance shall be reduced from one basic to Rs.2400/-. Now my doubt is, it is possible for us to reduce their medical allowance which is affected their CTC. I need your suggestion at the earliest.
Ganesh
From India, Mumbai
1I need an advise from you. We have a policy in our organisation. If the employee is under ESI limit, medical allowance will be paid 2400/- per annum. If the employee is not covered under ESI, he will be paid one basic per annum. Accordingly we have given appointment letters to all the employees. But as per new enhanced ESI ceiling, 6 employees are being covered under ESI. But in their CTC, medical allowance i.e.one basic is included. Since the ESI is increased, medical allowance shall be reduced from one basic to Rs.2400/-. Now my doubt is, it is possible for us to reduce their medical allowance which is affected their CTC. I need your suggestion at the earliest.
Ganesh
From India, Mumbai
Dear Ganesh
Yes its possible. You can give them new appointment letters & explain them about the new ESIC structure. Orelse you can also give them seperate letters saying that you medical alllowance will be reduced & you ESIC will be applicable.
From India, Ahmadabad
Yes its possible. You can give them new appointment letters & explain them about the new ESIC structure. Orelse you can also give them seperate letters saying that you medical alllowance will be reduced & you ESIC will be applicable.
From India, Ahmadabad
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