\"What Are The Advantages & Disadvantages In ESI &mediclaim\" - CiteHR
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Dear Mr Sharma (Apex Management),

You are misunderstanding me, please try to understand where I am stressing. I know very well provision's of LAWS. But what you are failing to understand the practical implementation of laws in case of IT/Software/ITES. I cant use strategies of FMCG domain, in a software company. But this does not mean statuary compliances are different for different industry.

"See, I know very well life in IT/ITES sector & I wish to join this sector as HR Manager with priority. Though as per ESI, 1.75% of Basic+ DA should be paid by employee & 4.75% by employer. Though ceiling may change from INR 6500 to INR 15000, means for a larger section of employees now ESIC will become mandate.'

I have used ' ceiling may change from INR 6500 to INR 15000' because there is a reason, FYI soon ESI ACT will be revised & Remuneration / salary/ wage ceiling will change from INR 15000 to INR 25000, we are waiting for official gazette . Ministry is considering this & soon this might happen. It is assumed that you know all these. Refer my attachment for more information.

Please refer the attachment, so that I can make you understand practical situation.... Now please don't say I have practiced drawings / color crafting, after referring the attachment. Color have been changed to highlight & stress some important words/ phrases, which I cant do normally here.

Thanks & Regards

Sovik B

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One more good news is there, Mr Sharma (Apex Management), Ministry is also thinking to simplify labor laws. As said earlier, linearization policy is being followed by current central government. So, soon it may happen that labor laws will be revised & additionally I have also heard from a valid source that one single ACT might be published which will be of miscellaneous nature, means it will contain all the features of labor laws, which will not only benefit employees but also employers.
Sovik B

I received a question via private e-mail, asking how Basic +Da > 15000 as shown in attachment remuneration amount will lie between 30,000- 50,000 per month.

Answer is It cannot be forecast but if we view the proposed changes, and keeping in mind of best market practice , corporate taxes & salary / remuneration break ups then generally Basic +DA > 15000 would lie between monthly remuneration of INR 30000-500000.

And for calculation purpose at this moment, if we need to discuss whether ESI or Mediclaim is better or not, then its better to consider Basic +DA instead of Remuneration, because proposed changes are (which was supposed to be effective from April 1,2014):

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 salary's meaning is provided by Sec 2(22) of ESI Act, 1948.

Refer link : Government 'seriously considering' of raising wage ceiling of ESI and PF: Minister - The Economic Times

Again a strategic discussion like these should include both current statutes & possible changes in future statutes, in a harmonious way. The benefit of this would be suggested plan would include the effect of future changes in statutes too.

Thus, if my ESI bucket included:

a. Basic + DA <= 15000 then ESI should be mandate, then automatically my ESI ACT,1948 will be met along with proposed changes stated above as monthly remuneration will lie between INR 30,000.

b. Basic + DA> 15000, then this case is not coming under ESI, but medical cum insurance (Individually /jointly funded) will reduce both corporate tax & income tax of employee will reduce. Means, facilities of ESI will be there, plus chances are there of Sum assured & tax savings, which ESI cant provide individually.

But still its better to wait with patience. And yes apologies, in previous attachment made a mistake, so this would be correct

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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 mail on or you cal 09025626868
Mr Srinivas,

Hope my professional friend who posted this question will consult with you. But only one request, if any professional HR consult with you regarding this kind of Insurance, please suggest those plans which provide sum assured, mediclaim & tax savings.

Due to my profession, I know a few of such policies but still its a request if you can cite some example with features, I hope many HR professionals would be able to understand the importance, & difference.

Though I am not from insurance background, but I understand the psychology of HR's & Senior Managers. Its like even if they are not aware of precise details, they simply don't want to gather information and there by lose opportunity of cost savings & better getting employee eccentric just by thinking 'All people are salesman, who wish to take away their money'.

A few of such plans & proposal, with detailed plan will help the industry leaders to widen their narrow mind. Even in my career I have heard thish kind of weird comments, like you are a 26years old guy, what do you know about business/ accounts/HRM, You don't have experience & recent most 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 & such kind of HR's professionals, senior management, Directors!


Sovik B
Dear Shovik & Mr. Sharma,
In refrence to the above discussion , Some where we have missed the tack for discussion and influencing own thoughts, instead of sharing knowledge. However enough matter knowledge have been shared. thanks for valuable inputs.
Hai members,
this platform is the sharing of knowledge with personal experience. Personal experience is the totally mixed with knowledge and own perceptions in problem solving with critical situations. One cannot bifurcate knowledge and perceptions (thoughts) which one is correct. Tackling the human machine is different from the technical machine.
Hence human touch is required to pacify the situation.
ESI is not an option, it is mandatary. ESIC hospital, if necessary, it refers to well-known hospitals for certain treatments, when such facilities are not available in the ESIC.
Providing MEDICLAIM facilities is an option left to the Management.
Dear all
he asked about the advantages & Disadvantages in ESI & Mediclaim
After gone thru the all answers that little bit confused by me
First please note we can't compare with the each other
both the scheme are important and required to employees
every one telling that ESI is provided to the whose gross salary is less the Rs.15001/-
but first ESI will be applicable on geographical area, if the area where you are working is not in the preview of the ESI
even though you will getting less than Rs.15000/- salary/wages you are not covered under ESI Act, in this situation you have to cover under Employee compensation act.
ESI is statutory
Medi claim is facility
ESI is the social security
medi claim is benefit
ESI covered when you are in duty
Medi claim covered 24 hours
ESI paid pension for deceased IP
Medi claim paid medical assistance only
There are several advantages & disadvantages in the both , which shared a few
V K Rao
hi sir/madam this is srikanth i am working in one company they given one project for me.... that is'' why the employee are not using the ESI hospitals why they are going to pvt hospitals'' .... this is my summary of my project plz assess me which topic is suitable to this summary and where i collect data.......plz suggest me as soon ASAP...........
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