Hello All, Can you please guide me on how to include the medical insurance premium in the CTC breakdown?
My company is currently bearing the insurance cost of employees. However, we would now like to include insurance for spouses and children. However, the company will charge for the premium in CTC. So please guide me on how to add the premium in CTC.
Each premium will be different for each employee because age will be different.

From India, Mulund West


Your question is not very clear.

I hope you mean to say that for the Employee Mediclaim Policy is free of cost and complimentary whereas if the employee add the family it will be on chargeable basis which you want to add in their CTC ? Am I correct ?

When you are recovering money from the employee towards premium cost for their family you are not supposed to add the same in the CTC salary of the employee. Cost to Company (CTC) is nothing what ever cost employer is incurring towards employees towards salary or other indirect benefits only those elements can be added to CTC and you cannot show the amount you deducting from the salary of the employee in their CTC.

Either you can recover the premium cost for family as single deduction or your Management may consider providing 2-3 EMI options and accordingly the premium paid the family can be recovered in equal instalments from the salary of the employee.

From India, Madras

From your post I have understood the following

Your Company pays Mediclaim Policy premium for the employee
Your Company wishes to give the option of covering the spouse and children to the employee.
However, the premium charged for the spouse and children has to be borne by the employee and not the Company.

On the above understanding, I offer my views

Generally, insurance Companies quote premium on the following basis

a) Sum insured for individuals (Employee, Spouse & Children). For Example the Employee, Spouse & Children may be covered for a sum insured of Rs.2,00,000 each. In such a case you can seek the break up of insurance premium for the Spouse & Children and recover it from the employee.

b) The sum insured can be a floater policy for Rs.2,00,000 among the family members (Employee, Spouse & Children). In such a case obtaining a break up of the premium amount for Spouse & Children could be difficult in my opinion.

As option a) will be easy to administer, I would recommend that you take this option, though the premium may be marginally higher in option a).

The advantage of option a) is even after the employee quits the organisation, he/ she can continue the policy coverage for himself/ herself and family members.

I followed this in an organisation and employees were thankful for this.



From India, Madras

Your insurance partner will give the tentative cost per member & the same shall be considered CTC towards the Medical benefit
From India, Bangalore

There is no confusion, since the Ins.premium (at actuals) is directly paid by the employer, not to be included in the Gross salary & 'take home pay'. Instead the component is to be among the ' non-cash components' which forms part of CTC, among the leave salary, EPF employer's contribution, gratuity etc. In other words, its 'employee cost', cost to co. not payable in the monthly pay packet.
From India, Bangalore
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