Page 2 - Benefits Extended
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HR Manual 2019_ Ver-005                        Chapter – 7  BENEFITS EXTENDED TO THE EMPLOYEES

               7.4     Disbursement of Salary
                       Salary of each Employee will be directly deposited in the Employee’s SB account in the designated

                       bank. Income Tax, if any, will be deducted from the salary and remitted to the government.

               7.5     Employee Welfare Schemes

                       7.5.1   Employees Provident Fund (EPF)
                              All Employees on permanent establishment will be  enrolled under EPF scheme and their

                       contribution as fixed by the government will be deducted from their pay.  Management will make a
                       matching contribution applicable as per EPF Act.

                       7.5.2   Employees State Insurance (ESI)

                              All  Employees  on  permanent  establishment  who  are  earning  Rs.21000/-  and  below  per
                       month will be enrolled under ESI scheme and their contribution (.75%) as fixed by the government
                       will be deducted from their pay.  Management will make a contribution (3.25%) applicable as per
                       ESI Act.


                       7.5.3   Medical Insurance
                              Any Employee from his Date of Joining is eligible for Medical Insurance.
                              The scheme covers Employee + 4 Dependents. The Dependents shall be as follows:
                                    Spouse

                                    Children
                                    Parents

                                    Siblings (under 25 years of age)

                              The Employee shall opt and choose the combination of Dependents as per his own accord,
                              but not exceeding the limit of 4 Dependents. Medical expenses up to two lakh are covered
                              by the Employer. Additional Coverage of up to Rs. 5 Lakhs is optional where the premium

                              for the additional coverage should be borne by the Employee himself.
                       7.5.4    Gratuity
                              An Employee who has completed five years of qualifying service is eligible to get service

                       Gratuity at the time of relieving/ retirement/ death or disablement due to accident or disease.  The
                       grant of Gratuity will be @ 50% of monthly salary (less HRA) for every completed year of service.

                       The formula to calculate gratuity is  (Number of years of service) *  (Last drawn Gross Salary less
                       HRA) /26*15 subject to Rs.20,00,000/- as the highest pay.



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