Dear Seniors,
I am bit confused whether WC policy taken by the employer is a part of CTC of Employee or Not.
If no than is there any legal complications if we show it into CTC break up of the employee
From India, Mumbai
18I am bit confused whether WC policy taken by the employer is a part of CTC of Employee or Not.
If no than is there any legal complications if we show it into CTC break up of the employee
From India, Mumbai
Dear Consultant Brother,
If you understand the concept and meaning of CTC, you will never be confused.
CTC is cost to company and not a pay to employee. Suppose, you are a company / employer. You hire a service of mine. You will be spending on my employment in terms of salary and other benefits / perks etc. You will be also contributing to PF, Medical Insurance and other kinds of insurance, gratuity premium etc. on me and on other emplyees. All those expenses incurred by you on me and on other employees are construed as cost to you, i.e. CTC.
It is up to the employer what expense to be taken as CTC and what not. My advise to employers not to take expense towards premium paid for gratuity, medical insurance and other kinds of insuranc as CTC. Even some employers take costing of leave also as CTC for which I am not in favour. BUT I WILL NOT SAY THAT THEY ARE WRONG.
From India, Mumbai
If you understand the concept and meaning of CTC, you will never be confused.
CTC is cost to company and not a pay to employee. Suppose, you are a company / employer. You hire a service of mine. You will be spending on my employment in terms of salary and other benefits / perks etc. You will be also contributing to PF, Medical Insurance and other kinds of insurance, gratuity premium etc. on me and on other emplyees. All those expenses incurred by you on me and on other employees are construed as cost to you, i.e. CTC.
It is up to the employer what expense to be taken as CTC and what not. My advise to employers not to take expense towards premium paid for gratuity, medical insurance and other kinds of insuranc as CTC. Even some employers take costing of leave also as CTC for which I am not in favour. BUT I WILL NOT SAY THAT THEY ARE WRONG.
From India, Mumbai
Is it WC or Health Insurance policy? I think you mean Health Ins. It is part of CTC. Pon
From India, Lucknow
From India, Lucknow
Dear Vallabh,
In further refence to my respected senior member Sh Keshav Korgaonkar, I would like to add that premium paid by the employer on WC policy is not supposed to be included while fixing the CTC but in the Company where ESI scheme is applicable, the contribution is taken as part of salary for the purpose of calculating CTC since the scheme covers the employment injuries caused to the workers. As a precautionary measure, the employer prefers to have WC Policy where ESI scheme is not in existence.
BS Kalsi
Member since Aug 2011
From India, Mumbai
In further refence to my respected senior member Sh Keshav Korgaonkar, I would like to add that premium paid by the employer on WC policy is not supposed to be included while fixing the CTC but in the Company where ESI scheme is applicable, the contribution is taken as part of salary for the purpose of calculating CTC since the scheme covers the employment injuries caused to the workers. As a precautionary measure, the employer prefers to have WC Policy where ESI scheme is not in existence.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Dear friends, WC Policy is never be a part of CTC. It is the statutory obligation on the employer for providing WC Policy to its employees, where there is no applicability of ESI Scheme in their area
From India, Hyderabad
From India, Hyderabad
Dear Mr. Vallabh,
As mentioned by Mr. Yagniah – where there is no ESIC coverage then the Company has to cover its employees/workmens under WC (workmen compensation) policy - its nothing but It is a compressive Social Security Scheme designed to accomplish the task of protecting the ‘employees’ in the organized sector against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families..
Employees/workmen’s will be given an alternative options as WC policy since they don’t get ESIC benefits. . if you are company is considering ESIC contribution as part of employees CTC then you will have to considered WC also be a part of CTC only.
Dear Seniors/experts.
Pls. correct me if I’m wrong.
Thanks and Regards,
Jagadeesh R
Sr. Executive - HR
From India, Bangalore
As mentioned by Mr. Yagniah – where there is no ESIC coverage then the Company has to cover its employees/workmens under WC (workmen compensation) policy - its nothing but It is a compressive Social Security Scheme designed to accomplish the task of protecting the ‘employees’ in the organized sector against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families..
Employees/workmen’s will be given an alternative options as WC policy since they don’t get ESIC benefits. . if you are company is considering ESIC contribution as part of employees CTC then you will have to considered WC also be a part of CTC only.
Dear Seniors/experts.
Pls. correct me if I’m wrong.
Thanks and Regards,
Jagadeesh R
Sr. Executive - HR
From India, Bangalore
ESI contribution is recurring liability of employer every month,irrespective of occurrence of sickness or maternity or disablement or death to employees covered under ESI Act.But EC Act (HR professional pl do not say WC Act) attract only when an accident occurs to an employee not covered under ESI scheme and coming under the defenition of employee under EC Act.It is not applying to all the employed persons.
Also please understand that in India there is no law which make it obligatory for Employers to take insurance policy under EC Act or POG Act.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
Also please understand that in India there is no law which make it obligatory for Employers to take insurance policy under EC Act or POG Act.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
Dear Varghese ji,
While endorsing your above response, I would just like to draw your kind attention that some of the employers they take the cost incurred by them towards the premium for EC policy as CTC. Whether it right or wrong is a different subject. Therefore, the views posted by me in this subject are as under:
"It is up to the employer what expense to be taken as CTC and what not. My advise to employers not to take expense towards premium paid for gratuity, medical insurance and other kinds of insuranc as CTC. Even some employers take costing of leave also as CTC for which I am not in favour. BUT I WILL NOT SAY THAT THEY ARE WRONG."
From India, Mumbai
While endorsing your above response, I would just like to draw your kind attention that some of the employers they take the cost incurred by them towards the premium for EC policy as CTC. Whether it right or wrong is a different subject. Therefore, the views posted by me in this subject are as under:
"It is up to the employer what expense to be taken as CTC and what not. My advise to employers not to take expense towards premium paid for gratuity, medical insurance and other kinds of insuranc as CTC. Even some employers take costing of leave also as CTC for which I am not in favour. BUT I WILL NOT SAY THAT THEY ARE WRONG."
From India, Mumbai
Hi,
Employees compensation Act(WC Policy) is used as an alternative provision of Esic(where Esic is coverage is not available) and However both the provisions are meant for the welfare of employees.Also under statutory provisions employers are bound to provide such social security to every employee.Hence it is cost to Company.HR People must ensure that this benifit/privilage is granted to employees because it is statutory head as well as it is in the interest of employees welfare too.
Thanks
Bijay
From India, Vadodara
Employees compensation Act(WC Policy) is used as an alternative provision of Esic(where Esic is coverage is not available) and However both the provisions are meant for the welfare of employees.Also under statutory provisions employers are bound to provide such social security to every employee.Hence it is cost to Company.HR People must ensure that this benifit/privilage is granted to employees because it is statutory head as well as it is in the interest of employees welfare too.
Thanks
Bijay
From India, Vadodara
Dear Friend,
Mr. Karogoankar has very vividly and lucidly explained to you the concept of CTC.
Coming to the Workmen compensation, if your industry is covered by the ESI, the WC will not applicable to your industry. Workmen's compensation is only arises in case of any accident during the course of work and the concerned employees injured and loses his earning capacity, the workmen compensation act will apply and the compensation shall be paid as per the loss of earnings as tabulated under the WC Act. If the industry is covered under the ESI ACT, the industry is only to send the Accident report in Form No.12 toi the Local office and the local dispensary and ESI authoritiy will take care all the formalities in ariving at the compensation and the pension payable to the injured employee based on the quantum of injury and loss of earning capacity.
Hope this clarify your doubt.
G.K.Manjunath
Sr. Manager-HR
From India, Bangalore
Mr. Karogoankar has very vividly and lucidly explained to you the concept of CTC.
Coming to the Workmen compensation, if your industry is covered by the ESI, the WC will not applicable to your industry. Workmen's compensation is only arises in case of any accident during the course of work and the concerned employees injured and loses his earning capacity, the workmen compensation act will apply and the compensation shall be paid as per the loss of earnings as tabulated under the WC Act. If the industry is covered under the ESI ACT, the industry is only to send the Accident report in Form No.12 toi the Local office and the local dispensary and ESI authoritiy will take care all the formalities in ariving at the compensation and the pension payable to the injured employee based on the quantum of injury and loss of earning capacity.
Hope this clarify your doubt.
G.K.Manjunath
Sr. Manager-HR
From India, Bangalore
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