Industrial Relations And Labour Laws
Educator, Management Consultant & Trainer
9th January 2017 From India , Pune
removing Medical Allowance & reimbursement shall be treated as changed in service condition hence notice thereof atleast 21 days before is to be serve to all the concerns employees u/s 9A of ID act. 1948 and No changes can be made unless having employees's concent. however medical allowance and medical reimbursement is two different component while medical allowance is fully taxable in the hand of employee whereas medical reimbursement is exempt upto 15000 u/s 17(2) of income tax act. 1961. since it is not statutory component therefore you are not bound to put these component in salary structure. a medical reimbursement predominantly aims to provide the tax benefit to employees only general medicines and accident expenses are allowable under medical reimbursement. the following expenditure is not permitted to grant the medical reimbursement
:- cosmetics & cosmetic surgery.
:- Ear piercing.
:- exercise equipment or programs.
:- fitness/weight Loose programs and Drugs.
:- Funeral expenses.
:- Hair removal.
:- Hair Transplant.
:- illegal operations and treatments.
:- massage therapy to relieve the stress or depression.
:- Maternity cloth.
:- Teeth whitening.
:- Non prescribed Drugs and Medicines?
Thanks & Regards
HR & Labour Laws Advisor
10th January 2017 From India, Agra
1. whether we should take any permission from Labour office.
2. what will be the notice period
3. what will be the compensation if employees worked for 3 years only.
4. Their Basic=9000/- HRA=4000/-Conv All =3000//-
and calculation of Compensation would be on basic or gross?
10th January 2017 From India, Hyderabad
13th January 2017 From India, Kannur
You are asking salary structure . You can also devise this, For example- Basic salary/ HRA/ Conv. reiumbursement/ Med.allowance/ LTA etc.There should be some components which under Income Tax can be allowed and are beneficial to employees and that should be a point for considering while finalizing structure. Expenses on medical treatment if reimbursement can go tax free and one can save from income tax provided it has been reimbursed subject to Rs.15000/ year if bills are produced. Company can pay even if bills are not produced , but the amount paid without bills in support will be taxable. Similarl treatment is to be given for LTA and HRA .You can prepare this and get proposed structure vetted by your finance head, who must be dealing with company taxation.
15th January 2017 From India, Delhi