Dear Seniors,
I need advice from you. We have a policy in our organization. If the employee is under ESI limit, medical allowance will be paid ₹2400 per annum. If the employee is not covered under ESI, he will be paid one basic per annum. Accordingly, we have given appointment letters to all the employees. But as per the new enhanced ESI ceiling, 6 employees are being covered under ESI. However, in their CTC, medical allowance, i.e., one basic, is included. Since the ESI has increased, the medical allowance shall be reduced from one basic to ₹2400. Now, my doubt is, is it possible for us to reduce their medical allowance which is affecting their CTC? I need your suggestion at the earliest.
Ganesh
From India, Mumbai
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1I need advice from you. We have a policy in our organization. If the employee is under ESI limit, medical allowance will be paid ₹2400 per annum. If the employee is not covered under ESI, he will be paid one basic per annum. Accordingly, we have given appointment letters to all the employees. But as per the new enhanced ESI ceiling, 6 employees are being covered under ESI. However, in their CTC, medical allowance, i.e., one basic, is included. Since the ESI has increased, the medical allowance shall be reduced from one basic to ₹2400. Now, my doubt is, is it possible for us to reduce their medical allowance which is affecting their CTC? I need your suggestion at the earliest.
Ganesh
From India, Mumbai
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Dear Ganesh,
Yes, it's possible. You can give them new appointment letters and explain the new ESIC structure to them. Alternatively, you can also provide them with separate letters stating that their medical allowance will be reduced and ESIC will be applicable.
From India, Ahmadabad
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Yes, it's possible. You can give them new appointment letters and explain the new ESIC structure to them. Alternatively, you can also provide them with separate letters stating that their medical allowance will be reduced and ESIC will be applicable.
From India, Ahmadabad
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ESIC Form-Medical Expense Reimbursement.p df