Medical Allowance Compensation Management

Prepared By

Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.

Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Medical Allowance

• Medical allowance is a fixed

allowance paid every month

to the employees

irrespective of the fact

whether they submit the

supporting bills or not.

Medical Allowance

• Medical reimbursement is a

payment made to an

employee against the

medical bills produced by

him/her subject to his/her

entitlement.

Medical Allowance

• The maximum tax benefit

available is Rs. 15,000 per

annum. Under this head,

one may avail for reduction

in the taxable income for a

maximum of or up to Rs.

15,000 for medical expenses

during each financial year.

Medical Allowance• Reimbursement by an

employer of medical expenses incurred by an employee is generally tax-free. Where an employee is allowed to get reimbursement for the medical expenses incurred by him or his family members, the entire amount of reimbursement is tax-free and is not treated as a taxable perquisite.