The why of statutory social security measures for employees
BY Thomas
5 years ago
comments comment

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.



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's is whether we will be installing Windows XP on the computers we assemble. Our answer has been the same - "Yes we will, if you pay for it". We would like to clarify our policy regarding piracy. We understand that piracy is illegal and we will not be doing anything to promote piracy. People have been accustomed to computer assemblers installing Windows XP or Windows 98 on assembled as well as the branded PC's (that come without the Microsoft OSes preloaded) that there is a notion in the market that the software comes as part of the computer. A lot of people do not even realize that Microsoft Office that comes pre-installed in such systems are neither a part of the Windows OS nor is free. Some are even under the impression that these software are free. It is not that there is no alternative to pirating software or paying high prices for the software required. There are thousands of free software out there that can perfectly replace any and all (almost) the software that a common PC user needs to use(except games for gamers). Piracy is illegal. So for those who would like to not do anything illegal there is a simple solution - embrace the FLOSS software out there. We will be more than happy to provide you with whatever kind of technical support that you would need in such a switch. As an aside let us take a look at the economics behind piracy. People who pirate wouldn't probably have otherwise bought the software. They also would tend to become dependent on the software they pirate as they probably would not be trying out alternatives. Companies don't really loose anything with each pirated copy of their software. They will instead get free promotion of their software through such copies and their users. At some point of time in the future, with stronger DRM protections, companies will be able to put a stop on piracy. When such a thing happens these companies will be able to make the people who pirate, and who are solely dependent on the pirated software, pay through their noses for these software. Ultimately it is these people who pirate, stand to loose anything and not the software companies. Promoters of FLOSS software should understand this issue and should pledge to never pirate at all and should contribute their efforts to spread the awareness about this danger. We, as a company do not support piracy and at the same time we do not approve of the Software Vendor's policy of charging exorbitant rates for these software. We have had potential customers walk out on us because we stood to our stand that we will not pirate - no matter what. But our policy remains. However if people pirate, we will not do anything to stop them, because we don't have to. We will not force people to buy high-priced software, we will be trying our best to promote alternatives and we will not install pirated software for you. Company Policies Leave a reply Your email address will not be published. Required fields are marker * Cherry (not verified) access_time 20 Jun 2019 - 22:55 I think PCBSD would be another nice end-user,GUI-ish, free option. See: Srikanth NS (not verified) access_time 20 Jun 2019 - 22:55 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 20 Jun 2019 - 22:55 seems to be a viewer for dwg and dxf files. They also have dxf-dwg converters Add new comment

on 05th July 2007 / by webmaster
We started our hardware division with a vision to bring genuine, quality products at the lowest possible prices to our consumers. This policy document deals with all these three aspects of our vision statement. Genuine Products We sell only genuine components and products. We buy from all the authorized distributors of the items we carry and we do not buy any spurious or counterfeit products. We are registered retailers of all the products that we carry. We do not buy products from the black or grey markets. Since we don't do any of the above illegal activities, naturally the products that we carry are guaranteed to be genuine, original components bought from the respective legal channels. In the systems that we sell we guarantee that all the components are included as was originally mentioned in our quotation and billed in our invoice. Moreover we also guarantee that if a customer is buying a new system we will only be including fresh-out-of-the-box components unless the customer has specifically requested for a used component. Quality of components We carry only genuine and original components. The quality of the components would therefore depend primarily on the brand of the component. An average user might not be able to distinguish between the qualities of these components based on the brand names. We as responsible dealers will try to identify and convey relative qualities of components as best as we can. There will however be limitations in this process but we will be trying our best to do this. Pricing Normally businesses price their products at the maximum prices that is affordable by the customers for the value provided and given the levels of competition. In such a scenario, the business would try to sell as high as possible given the market conditions, and the customer would try to buy for as cheap as possible. This result of this tug of war will be determined by the going prices in the market and the levels of awareness of the customer. In an emerging market as computer hardware, both these factors will be stacked against the benefit of the consumer. However we have a different philosophy for pricing our products. We fix our prices at the lowest we can afford to sell. This lowest price will include our operational costs and our capital costs and a nominal profit. The pricing will be such that we will not be able to sell at any price lower than the set prices without incurring a loss in the long run. Rather than a customer fighting for the lowest prices we ourselves are offering our lowest prices. As volumes in sales increases we will be able to sell the products even cheaper than what we sell currently as we would be able to get our components even cheaper. We will not hike up our prices to give you free offers or hike up our prices to give you reductions on the hiked up price. We believe that it would amount to misrepresentation of facts if we do that. Additionally any free offers that we will give/currently give, will be/are offers on top of the actual prices of the products with the offer. Company Policies Hardware Leave a reply Your email address will not be published. Required fields are marker *

on 01st September 2007 / by webmaster
The list of holidays for Zyxware for the year 2007 is as follows. January 26 - Republic Day February 16 - Shivratri March 31 - Milad-e-Sherif (Nabidinam) April 6 - Good Friday May 1 - May Day (Labour Day) August 15 - Independence Day August 27 - Thiru Onam August 28 - Shri Narayana Guru October 2 - Gandhi Jayanti October 13 - Ramzan * December - 20 - Bakrid * December - 25 - Christmas * Subject to change depending on the sighting of moon. Company Documents Company Policies Leave a reply Your email address will not be published. Required fields are marker * Cherry (not verified) access_time 20 Jun 2019 - 22:55 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 20 Jun 2019 - 22:55 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 20 Jun 2019 - 22:55 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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