Hi, I work as an HR in a small school. We deduct PF and ESI as per norms, but in addition, my management is planning to offer health insurance for our staff. I want to know if the medical insurance premium paid by the employer to the insurance company can be deducted from the employee's salary. I understand that I can go for tax exemptions for the group premium paid by the employer, but would like to know if the premium amount can be deducted from the employees and, if so, under what head the same has to be deducted?
Regards, Padma
From India, Chennai
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Regards, Padma
From India, Chennai
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If the premium is going to be the employees' responsibility, then consult them first. Please refer to sections 9-13 of the Payment of Wages Act to understand authorized deductions. This deduction will not be permissible unless written authorization is obtained from the employee.
From India, Pune
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3180From India, Pune
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Employees' State Insurance General Regulations 1950.pdf
Employees' State Insurance General Regulations 1950.doc