Dear All,
We are going to provide group insurance to our employees, but management wants to deduct it from employees on a monthly basis. Is it possible in terms of statutory regulations? If yes, how can we show it in the Cost to Company (CTC) structure? Kindly guide me on the same.
Thank you.
From India, Bengaluru
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3We are going to provide group insurance to our employees, but management wants to deduct it from employees on a monthly basis. Is it possible in terms of statutory regulations? If yes, how can we show it in the Cost to Company (CTC) structure? Kindly guide me on the same.
Thank you.
From India, Bengaluru
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Hi,
Insurance is considered as employee welfare, but deducting it from employees' salary is not worth giving. Are your employees okay with it? I would suggest checking with employees as well; they may refuse to opt for it from the company as they may have their personal insurance.
From India, Pune
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Insurance is considered as employee welfare, but deducting it from employees' salary is not worth giving. Are your employees okay with it? I would suggest checking with employees as well; they may refuse to opt for it from the company as they may have their personal insurance.
From India, Pune
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Insurance as a Welfare Measure
When a company arranges insurance for its employees, it holds significant value due to the potential for negotiating insurance premiums with employees. This should be considered a welfare measure by the company towards its employees, and employees should view it as a positive gesture.
If the premium amount is deducted from employees' salaries—without providing any dividend to management—it could be done in 3-4 installments instead of a single payment. In this case, the insurance premium amount can be considered an element of the Cost to Company (CTC) as the annual premium amount.
From India, Aizawl
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When a company arranges insurance for its employees, it holds significant value due to the potential for negotiating insurance premiums with employees. This should be considered a welfare measure by the company towards its employees, and employees should view it as a positive gesture.
If the premium amount is deducted from employees' salaries—without providing any dividend to management—it could be done in 3-4 installments instead of a single payment. In this case, the insurance premium amount can be considered an element of the Cost to Company (CTC) as the annual premium amount.
From India, Aizawl
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