is this possible for employer to remove medical reimbursement from salary if previously get in salary. but now after increment they remove medical reimbursement from salary.
From India, undefined
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From India, undefined
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You have written your post as if you had "Medical Reimbursement" as one of the components of your monthly salary. If this is true, then it is a wrong practice. Reimbursement is defined as compensation paid (to someone) for damages, losses, or money already spent, etc. Were you getting medical reimbursement even without spending money? In a few companies, depending on the designation, certain slabs are fixed up to which the claimant can submit a claim for the medical expenses. In support of his/her claim, the claimant has to attach cash memos on account of medical expenses. The claim is submitted to the HR department, which in turn forwards it to the Accounts department. On scrutiny of the claim, the reimbursed amount is credited to the claimant's account. However, this is not a part of the salary; hence, it is not included in the salary slip.
Please clarify further on your query.
Thanks,
Dinesh Divekar
From India, Bangalore
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8072Please clarify further on your query.
Thanks,
Dinesh Divekar
From India, Bangalore
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Restructuring of Salary Components
There can be a restructuring of salary. With this, some components of the salary may be removed and others included. Since each revision is a new condition of service, there is nothing wrong with removing medical reimbursement as a component of salary, provided there is no loss of income to the employee. For instance, if the salary was Rs. 25,000 and Rs. 1,000 was the medical reimbursement, and if this is revised to Rs. 26,000 as a fixed salary per month, there is no direct loss to the employee. Therefore, this is not illegal.
However, for an employee whose income is subject to tax deduction, this will reduce their take-home salary because reimbursements are exempted from Income Tax subject to a certain amount, say Rs. 15,000 per annum for medical reimbursements. Therefore, if you have a larger portion of your salary as reimbursements, like medical reimbursements, fuel reimbursement, telephone reimbursement, etc., your TDS will be less.
Regards, Madhu.T.K
From India, Kannur
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There can be a restructuring of salary. With this, some components of the salary may be removed and others included. Since each revision is a new condition of service, there is nothing wrong with removing medical reimbursement as a component of salary, provided there is no loss of income to the employee. For instance, if the salary was Rs. 25,000 and Rs. 1,000 was the medical reimbursement, and if this is revised to Rs. 26,000 as a fixed salary per month, there is no direct loss to the employee. Therefore, this is not illegal.
However, for an employee whose income is subject to tax deduction, this will reduce their take-home salary because reimbursements are exempted from Income Tax subject to a certain amount, say Rs. 15,000 per annum for medical reimbursements. Therefore, if you have a larger portion of your salary as reimbursements, like medical reimbursements, fuel reimbursement, telephone reimbursement, etc., your TDS will be less.
Regards, Madhu.T.K
From India, Kannur
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Dear All,
Mr. Madhu T.K. has clarified the position in clear terms. With the restructuring of components of the salary, the correct procedure is to obtain acceptance from employees as it changes the terms of engagement. However, this is seldom done.
Regards,
Col. Suresh Rathi
From India, Delhi
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Mr. Madhu T.K. has clarified the position in clear terms. With the restructuring of components of the salary, the correct procedure is to obtain acceptance from employees as it changes the terms of engagement. However, this is seldom done.
Regards,
Col. Suresh Rathi
From India, Delhi
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Considerations for Changing Union Employee Benefits
Do you propose to change it for employees who are members of a union? In that case, you will have to discuss and convince the change and implement the same later. The important thing is there should be no loss of gross salary/wages.
If you intend to effect any change, it is better to refer to the Fourth Schedule of the Industrial Disputes Act, 1947. If any item therein is proposed to be changed, then you will have to issue a notice of change as required under Section 9A of the Act. In the case of salary/wages, the section is definitely applicable, and as such, you must display at least 21 days' prior notice on the board about the proposed change.
From India, Mumbai
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Do you propose to change it for employees who are members of a union? In that case, you will have to discuss and convince the change and implement the same later. The important thing is there should be no loss of gross salary/wages.
If you intend to effect any change, it is better to refer to the Fourth Schedule of the Industrial Disputes Act, 1947. If any item therein is proposed to be changed, then you will have to issue a notice of change as required under Section 9A of the Act. In the case of salary/wages, the section is definitely applicable, and as such, you must display at least 21 days' prior notice on the board about the proposed change.
From India, Mumbai
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Dear Shrikant,
The query is about the redesigning or restructuring of the salary components. It appears that you have given your perspective from an Industrial Relations (IR) point of view.
For Deepak Singh Nayal: Although seniors have shared their valuable insights, you have not responded to their queries or acknowledged their advice. Professionalism entails doing so.
Thanks,
Dinesh Divekar
From India, Bangalore
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The query is about the redesigning or restructuring of the salary components. It appears that you have given your perspective from an Industrial Relations (IR) point of view.
For Deepak Singh Nayal: Although seniors have shared their valuable insights, you have not responded to their queries or acknowledged their advice. Professionalism entails doing so.
Thanks,
Dinesh Divekar
From India, Bangalore
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Medical Reimbursement Format.doc
ESIC Form-Medical Expense Reimbursement.p df