The why of statutory social security measures for employees
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BY Thomas
5 years ago
Company-Policies
0
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When it comes to compensation, the standard question that employers and employees are concerned with is 'what is the in hand component?'. There is always the under current that contributions to PF, ESI and such social security instruments are not really something they are keen on.

Employees are concerned about it primarily because that represents money that is available immediately for expenditure. This is especially true of people who are fresh out of college or just into the early years of their work life. This period also coincides with a stage in life when life events and financial impact of these events are yet to be fully felt. Here, it is the 'in hand component' that makes sense. Risk coverage and saving up for a rainy day are not really top priorities as we all tend to be very optimistic about the future.

Employers are concerned about this for two reasons; one being that it is the most frequently asked question by eligible candidates and even current employees. Secondly, by going for only direct payments to employee, the employer can avoid the cost of Employers Contributions to these social security instruments.

It is fairly difficult to convince employers and employees of the value of these investments. As I joined Zyxware, we had just reached a stage where Employee Provident Fund and Employee State Insurance were becoming mandatory. So the onus was on me to take the registration of Zyxware under these two schemes to completion. We had a challenge in that it meant an immediate rise in our compensation expenditure to ensure that the in hand component was not affected too much. Again, when it came to hiring, there would be these questions of is it possible to not have the EPF and ESI but get the full amount in hand. The HR here has patiently handled these queries and have been defending these social security measures. In some ways, their role in negotiating with the management and employees for effective EPF and ESI has to be seen as a contribution to sustenance of social security measures like EPF and ESI. Especially, given that there are many ways in which organisations try to bye-pass these measures.

And then once in a while, when a person leaves the organisation and decides to withdraw his PF contribution, he finds out that over a period of time he has indeed accumulated a significant amount of savings. He comes and tells us, "It is a good thing that there are these measures. Otherwise, I would not have had this savings." Such statements are compensation enough for the stress of handling this part of the compensation negotiations.

Clearly, Indian policy makers and policy making processes have displayed maturity and prudence in backing these provisions.


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on 07th June 2007 / by webmaster
One of the most common questions we hear from potential customers who come to buy PC's or Laptop' Company Policies Leave a reply Your email address will not be published. Required fields are marker * Cherry (not verified) access_time 18 Aug 2019 - 22:57 I think PCBSD would be another nice end-user,GUI-ish, free option. See: http://www.pcbsd.org/ Srikanth NS (not verified) access_time 18 Aug 2019 - 22:57 Hi WIll anybody point out a software which can read AUTOCAD Drawings (.dwg format) in LInux? Like OpenOffice which can read all MS Office format files, edit them and save them back in .doc or .xls format itself? I would like to read .dwg drawings , edit them and save them in in .dwg format itself. Or am i asking for the moon? Anoop John (not verified) access_time 18 Aug 2019 - 22:57 http://lx-viewer.sourceforge.net seems to be a viewer for dwg and dxf files. They also have dxf-dwg converters Add new comment
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on 01st September 2007 / by webmaster
The list of holidays for Zyxware for the year 2007 is as follows. Company Documents Company Policies Leave a reply Your email address will not be published. Required fields are marker * Cherry (not verified) access_time 18 Aug 2019 - 22:57 Why are the days picked out and chosen for employees? There are 12 days mentioned here. Why not give people ( employees) the option of choosing any 12 days of their liking for personal holidays so that the company doesn’t dictate terms on their personal religious inclinations ? If sufficiently early notice is provided, things can be planned for as well. Also, why is this on the public website and not a private internal employee webpage ? Cheers, Cherry Anoop John (not verified) access_time 18 Aug 2019 - 22:57 1) Since the number of employees are still small it is difficult to manage operations with the optional holidays model. If a certain combination of employees do not come to office on a particular day even if that be only 6/12 or 7/12 people the company will not be able to function properly on that day. In a larger company this might not cause any problem because of the cushion of larger number of employees. 2) In the longer run we will be moving to the optional holiday pattern with a set of fixed holidays and a set of optional holidays. 3) This is on the public site for 2 reasons - a) Open documentation policy :). b) Customers/Clients can know ahead the holidays of the company. Cherry (not verified) access_time 18 Aug 2019 - 22:57 1) I guess you know the logistics better, but having a situation where employees feel committed enough to the company to be flexible about their holidays seems a good deal of a better work situation than having rules set in stone. This would be especially true when the example is set from the ‘top’, whatever that is. 2) Good luck with this. 3) Open Documentation: Even open source projects have “internal” mailing lists. All the BSDs have them, most of the bazaar model’s have “rings” where private email resolves “internal” issues. I don’t think it is a good precedent. Add new comment
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