The following programs are mandatory in India:
- Employee Provident Fund (EPF): 12% of the employee's basic salary is deducted for the EPF and the employer makes a matching contribution.
See also: What is the Employees' Provident Fund (EPF)? - Gratuity: In India, it is mandatory for every employer (either public or private sector) to pay employees gratuity, provided the employee has completed 5 continuous years of work. Under the Gratuity Act, employees are covered if the employer has a minimum of 10 employees. Once an organization comes under the Gratuity Act, it will always remain covered even if the number of employees falls below 10.
See also: How is the gratuity in India calculated? - Medical Insurance: As per Order No. 40-3/2020-DM-I (A) dated 15th April, 2020 issued by the Ministry of Home Affairs, medical insurance for all employees is mandatory for all employers. The Government of India issued the mandate during the COVID-19 breakout in April 2020.
This insurance covers both hospitalization expenses and safeguards employees' hard earned money during such health emergencies.
The policy covers the hospitalization expenses of the employee and family members up to a prescribed limit. All industrial and commercial establishments, workplaces, offices etc. are required to arrange for the implementation of Standard Operating Procedure (SOP) before starting operations. All customers must offer core benefits to employees at USD60 per month.
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