Hi,
I just joined a HR consultancy services company, I have a question on the calculation of medical expense reimbursement. As far as I know the limit for medical reimbursement is Rs. 15,000/- PA, which comes to Rs. 1250/- per month. When I received the salary break up from my new company, I was surprised to see the medical reimbursement component as Rs. 2400/- PA i.e., Rs. 200/- per month. When I enquired about the same, I was told that the component is 10% of basic salary offered. I would like to know if the medical reimbursement is 10% of basic salary of the employee OR the limit of Rs. 15,000/- as designated by the income tax act is the right amount. Please advise.
From India, Bangalore
I just joined a HR consultancy services company, I have a question on the calculation of medical expense reimbursement. As far as I know the limit for medical reimbursement is Rs. 15,000/- PA, which comes to Rs. 1250/- per month. When I received the salary break up from my new company, I was surprised to see the medical reimbursement component as Rs. 2400/- PA i.e., Rs. 200/- per month. When I enquired about the same, I was told that the component is 10% of basic salary offered. I would like to know if the medical reimbursement is 10% of basic salary of the employee OR the limit of Rs. 15,000/- as designated by the income tax act is the right amount. Please advise.
From India, Bangalore
Rs 15000 is the maximum allowed under IT Act. It does not mean that one is eligible to get this sum. For that matter there is be given Medical reimbursement.
Normal practice is that a company may give one months basic as Medical Reimbursement. Some Companies give 10%. Again the amount may vary from level to level. Whatever has been stated in the appointment letter is valid
Please understand that there is no law compelling any organisation to pay Medical Reimbursment and IT limit is only for allowing the maximum reimbusement as exempted from salay for purpose of commuting IT
Sivasankaran
From India, Chennai
367Normal practice is that a company may give one months basic as Medical Reimbursement. Some Companies give 10%. Again the amount may vary from level to level. Whatever has been stated in the appointment letter is valid
Please understand that there is no law compelling any organisation to pay Medical Reimbursment and IT limit is only for allowing the maximum reimbusement as exempted from salay for purpose of commuting IT
Sivasankaran
From India, Chennai
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ESIC Form-Medical Expense Reimbursement.p df
Medical Reimbursement Format.doc