If anyone's man-hours are deducted due to leaving early or arriving late for duty, resulting in a loss of pay for one or two days, should the medical allowance entitled to them be deducted proportionally, or will they receive the full medical allowance? Is there any ACT that restricts us from doing so? Can anyone please illustrate with an example?
Thank you in advance.
From Qatar, Doha
Thank you in advance.
From Qatar, Doha
No, there is nothing restricting the provision of a minimum medical allowance. Medical allowance or reimbursement is provided due to exemptions from income tax laws. I am not familiar with labor laws, but the Income Tax Act does not impose any conditions for deductions.
From India, Bangalore
From India, Bangalore
Medical Allowance and Its Implications
Medical allowance is extended by the management of an organization to its employees, either as a consolidated amount or as a percentage of basic and D.A., excluding ESI-covered employees. Nowadays, medical benefits are provided through medical insurance by management with a specific amount.
In the case of your query regarding medical allowance, if extended by the management, it will not undergo a deduction if an employee goes on loss of pay or any other salary deductions whatsoever. Therefore, no labor law governs medical allowance, as it is a result of collective bargaining or a policy of the management. Touching the medical allowance would be highly unethical for any employer, and HRD should always maintain integrity.
Please uphold lawful man management practices, as it reflects the reputation of the company and its social responsibility.
From India, Pune
Medical allowance is extended by the management of an organization to its employees, either as a consolidated amount or as a percentage of basic and D.A., excluding ESI-covered employees. Nowadays, medical benefits are provided through medical insurance by management with a specific amount.
In the case of your query regarding medical allowance, if extended by the management, it will not undergo a deduction if an employee goes on loss of pay or any other salary deductions whatsoever. Therefore, no labor law governs medical allowance, as it is a result of collective bargaining or a policy of the management. Touching the medical allowance would be highly unethical for any employer, and HRD should always maintain integrity.
Please uphold lawful man management practices, as it reflects the reputation of the company and its social responsibility.
From India, Pune
Understanding Remuneration Components
Remuneration to employees is in two ways - one is related to attendance, and the other is related to employment. Basic, Attendance Allowance, Overtime, etc., are related to attendance. However, Conveyance, Washing, HRA, are related to employment, which means there is no deduction based on attendance and absence.
Medical Allowance Considerations
Medical Allowance is not mandated by any law, but it is a term of employment either through settlement or circular. Payment and deduction of medical allowance are according to the terms and conditions. If it is related to attendance, then overtime, PF, ESI, Gratuity are also to be calculated on medical allowance.
Contractual Obligations
Once any payment is made through settlement or terms and conditions, that forms a contract and becomes a law, meaning that the employer cannot unilaterally alter it.
Regards,
Vibhakar Ramtirthkar
SVR Associates
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Pune
Remuneration to employees is in two ways - one is related to attendance, and the other is related to employment. Basic, Attendance Allowance, Overtime, etc., are related to attendance. However, Conveyance, Washing, HRA, are related to employment, which means there is no deduction based on attendance and absence.
Medical Allowance Considerations
Medical Allowance is not mandated by any law, but it is a term of employment either through settlement or circular. Payment and deduction of medical allowance are according to the terms and conditions. If it is related to attendance, then overtime, PF, ESI, Gratuity are also to be calculated on medical allowance.
Contractual Obligations
Once any payment is made through settlement or terms and conditions, that forms a contract and becomes a law, meaning that the employer cannot unilaterally alter it.
Regards,
Vibhakar Ramtirthkar
SVR Associates
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Pune
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