Medical Reimbursement Dilemma: Should Absence Affect Your Yearly Entitlement?

Hi Friends,

I have a query regarding medical reimbursement. Normally, the total yearly entitlement is Rs. 15,000 (1250 * 12). If an employee submits bills and claims Rs. 15,000 in March only, and was absent for 5 days throughout the year, what amount needs to be reimbursed to the employee? Should it be Rs. 15,000 or Rs. 14,795 (Rs. 15,000/365*360)? My question is, should medical reimbursement affect the working days?

Thanks & Regards,
Sunil K
Email: sun020574@yahoo.com
Phone: 9810021711

Deduction of an amount from the medical reimbursement for 5 days absent from duty throughout the year depends on the decision of the management. Generally, no deduction is made in such cases.

Thanks,
Sivadasan

Sunil,

No deductions are made for leave. However, if the absence is for a prolonged duration, then the same shall be calculated on a pro-rata basis.

Regards,
Suja

Understanding Medical Reimbursement Policies

Medical reimbursement under a company's internal policy or under settlement with the recognized union, whether registered under the ID Act or not, is not subject to law but subject to the said policy or settlement only. However, if there is a settlement or declared policy that has become part of the contractual obligation under the ID Act, you are bound to follow such a policy. In most of such policies or settlements, there are relaxation clauses by which, in genuine and hard cases, management has and should have the power to relax, which will not be treated as a precedent. There is no law, except the ID Act, on such matters, which are not specifically covered under laws such as the ESI Act or WC Act.

O. Abdul Hameed Formerly Additional Commissioner ESIC

If it is a part of CTC and the employee was in loss of pay due to leave, a deduction is to be made in proportion.