Statutory Benefits

Provident Fund and Employees Pension:

• It is compulsory contributory fund for the future of the employee after his retirement or for
his dependents in case of early death.
• The employee and employer contributes equally towards the provident fund i.e. each of
them contributes 12% of the basic salary.
• The employees pension envisages to provide monthly pension to employees on
Superannuating, pension to dependants in unfortunate event of death

Employee State Insurance Corporation:

• ESIC provides the employee with medical relief and sickness cash benefits.
• The employer is required to contribute at the rate of 4.75% of the gross salary paid. The
employees are also required to at the rate of 1.75% of the gross salary.

Eligibility (ESIC) - The employee who is in receipt of gross salary below & up to 6500/- per month
excluding conveyance is eligible for ESIC coverage.

Bonus:

• The company pays bonus to every employee at the rate of 20% of the basic salary drawn
by the employee. However, it is subject to change at the discretion of the management.

Gratuity:

• Gratuity is paid as per Payment of Gratuity act 1972. An employee who completes five
years of service in the company is eligible for payment of gratuity. The rate of payment is
15 days salary for every year of service completed.

Non-Statutory Benefits

MEDICLAIM: - Definition: Mediclaim is an insurance policy, which covers medical expenses on

hospitalization. In our company United India Insurance Corporation covers it. Employee has to
pay premium amount and UIIC covers expenses according to the premium paid.

• The premium payable under this policy shall be paid in advance. No receipt for premium
shall be valid except on the official form of the company.
• Search Chem. Industries Limited pays a maximum amount of RS. 1500/- as premium for
every grade. The claim can be taken on joining.
• Upon the happening of any event, which may give rise to a claim under this policy, notice
with full particulars shall be sent to the company within 7 days from the date of
hospitalization.
• Under the Mediclaim, some of the diseases not covered are Asthma, Bronchitis,
Diabetes, Epilepsy, Hypertension, Influenza, Tonsils, etc.

Medical Reimbursement:

• The company reimburses medical expenses to it employees eligible as specified in the

appointment letter only on prorata basis against the bills to cover the employee and his
family.
 • Family includes spouse, dependant children and fully dependant parents.
• Employees on probation for those who have joined for part of the year are allowed to
claim medical reimbursement on prorata basis.

Group Personal Accident Policy

It is a group policy, which covers any personal loss due to any injury caused to any employee
during course of employment. The company pays the premium for all the employees covered
under this scheme. In our company United India Insurance Co. Ltd. covers this policy. While
lodging the claim under the Group Accident Policy, following details/certificates are required to be
submitted. Doctor's certificate for number of days rest required to be taken and the treatment
given for.

• Original Medical Bills/Receipts.

• Certificate of Basic + DA from Personnel Department.
• Certificate for number of days remained absent from duty from Personnel Department.
• If there is any fracture X-ray report along with X-ray film is required.

Upon the happening of any event, which may give rise to a claim under this policy, written notice
with all particulars must be given to the Company immediately. In case of death, written notice
also for the death must be given before internment/cremation.

• In case of death employee's family get 100 times of his/her basic salary.
• In case of disablement, employee gets reimbursed for number of days he was on leave.
In addition he will get 50% of above-mentioned salary as medical reimbursement.

Managers Superannuating Scheme It's a beneficial scheme under which employees get certain
amounts of money at the time of retirement and pension for the rest of their life.

• The employer is desirous of making provisions for certain grades of its employees upon
their retirement from services at or after a specified age or upon earlier cessation of
service or in the event of their death, for their spouse, children or dependents.
• It is intended that such provision shall, inter alia be made by the trustees into a Scheme
of Insurance with the Life Insurance Corporation of India and the premium payable
therefore shall be provided by contributions to be made by the employer.