Medical Allowance Related - CiteHR
Practicing Chartered Accountant
Man Management Functions
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If anyone\'s manhour is deducted due to earlygoing or latecoming his duty and simply encounter loss of pay for one day day or two. Should medical allowance entitled to him will be deducted with ratio or he/she will get the full medical allowance. Is there any any ACT which restrict us to do so. Can anyone please illustrate with example.
Thank you in advance
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No nothing restruct to give minimum medical allowance.
Medical allowance/reimburessement is made due to exemption incometax laws.
No idea of labour laws, but income tax act does not make any condition for deduduction.
No labour law on medical allowance to employees. Varghese Mathew
medical allowance id being extended by a management of an organization to it's employees, on a consolidated amount basis or as a percentage on basic and D.A., but other than ESI covered employees. Now a days, medical benefits are routed through Medical Insurance by management with a specific amount.
In the case of your query, the subject medical allowance, if extended by the management, will not undergo a deduction if an employee goes on loss of pay, or any other salary deductions, whatsoever.
As such, no labour law is on medical allowance, because, it is the collective bargaining or as a policy of the management. No employer would like to or should touch the medical allowance. If done so, it is highly an unethical organization. HRD should put it's head down always.
Please put your head-up and try to practice lawful man management functions.
After all it is a reputation of the company and Social Responsibility.
Dear All;
Remuneration to employee is in two ways - one is related to attendance and the other is related to employment. Basic, Attendance Allow, Overtime etc are related to attendance. But Conveyance, Washing, HRA, are related to employment which means there is no deduction based on attendance and absence.
Medical Allowance is not by any law, but it is term of employment either by settlement or by circular. Payment and deduction of medical allowance is according to the term conditions. If it is related to attendance then overtime, PF, ESI, Gratuity are also to be calculated on medical allowance.
Once any payment is by way of settlement or term of conditions, that is a contract and it becomes law, such that one i.e. employer cannot alter it unilaterally.
Vibhakar Ramtirthkar
SVR Associates

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