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Hii all,
I am working as team leader in MNC..i need to share your thought about how to reduce subsidy pay in my department.My production manager needs the reason for subsidy pay..already 2 persons are on maternity leave.that amount definitely will pay the company ..but he need the reason for the rest of amount ..last few more months people taking more leaves mostly because of health issues ..that is not our hand..Please give me ur suggestions to reduce subsidy pay and making more efficient workers.


Unable to understand the subsidy pay. If you feel that what every the amount / salry you are paying against leaves then on this count you can't do any thing bevause they are as per the acts. If you take maternity leave it is as per act only either the company has to pay or if they are covered under ESI then ESI corporation will pay.

As far as other leaves are concerned ie., except CL, you can make your rules ie., EL accumulation and encashment as well as limit for SL accumulation.

Even you can include a component called attendance bonus in the salary and those employee who attends the work with out any late reporting or with out any leave in that particular month you can pay them Rs.1000/- / Rs.500/- extra as bonus on monthly basis by this employees avail leave in emergencies and unavailed leave after certain leave wrt SL may lapse and iunavailed CL may get lapsed, the EL / PL over and above the accumulation limit can be encashed so that the attendance of the employees for the work may increase.

Even you are serious then you can also go for annual attendance bonus ie., those employees who got the attendance bonus for all 12 months may be given a house hold item worth of Rs.2000/- to Rs.3000/- also and it should given by the CEO / MD on the company formation day / annual day in the presence of their family members etc.

You can also inter link the attendance componet with the annual performance and a minimum of 20% of the increment should be on attendance. The same may be a component for promotion also.

Thus you can suggest to the management.

I believe I have added some value, pl. feel free to forward me if you require any further information.

Thanks and regards - kamesh

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