Employee Payroll Flexible Benefits
House Rent Allowance (HRA)
Coverage: All Full Time Employees
Key Policy Highlights:
 The allowance is for expenses related to rented
accommodation. Salaried individuals who live in a
rented house can claim the House Rent Allowance
(HRA) exemption from income tax. The exemption
may be partial or full Based on actual HRA received,
actual payment of rent and basic salary as per
below rule.
 The exemption for HRA benefit is the minimum of:
 Actual HRA received
 50% of salary (basic salary) if living in
metro cities, or 40% for non-metro cities;
and
 Excess of rent paid annually over 10% of
annual basic salary (rent paid minus 10%
of basic salary)
 In order to claim Tax exemption, Employees need
to submit the Rent receipt and a copy of the Lease
Agreement to the Finance team. It is mandatory
for the employee to report the PAN Card of the
'landlord' to the employer if the rent paid is more
than INR1,00,000 annually
 Employees availing Hostel accommodation need to
submit the rent receipts in the hostel’s letter head
or pre-printed receipt book.
 Expenses incurred on maintenance charges,
electricity bill, food (in case of paying guest
accommodation) are not eligible for any Tax
exemption.
 Tax exemption on HRA, if applicable, will be as per
the prevailing Income Tax rules.
Food Card
Coverage: All Full Time Employees
Eligibility Limit: INR. 1250/- Or INR. 2500/- (Per Month)
Key Policy Highlights:
 Employees can avail the benefit of Food
Reimbursement through Sodexo meal card
 Employees need to choose and define the Sodexo
amount in the system on a monthly basis.
 Employees can redefine the amount of Sodexo on a
monthly basis, subject to the prescribed limits.
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(*) Sodexo: Sodexo card is a smart & secure way of digital
currency. It is a preloaded card that can be used at most of
the ready food and beverage outlets across the country.
Employees who decide to opt for Sodexo, need to select the
option on employee self-service portal, HR Operations team
will consider the details and proceed accordingly. At the end
of each month, the cards will be loaded with the amount
defined by the employees. Once loaded, the card is ready
for use.
As per the prevailing RBI regulations, the maximum
maintainable amount in a meal Card at any point of time is
INR. 20000.
The amount relating to any financial year has to be utilized in
the same financial year. If the amount is accumulated and not
utilized on or before 31st March, unutilized amount will be
considered as income for calculation of TDS
Please note that meal card usage is subject to Governmental
regulations.
Provident Fund
Coverage: All Full Time Employees
Eligibility: All salaried employees in the roll
 All employees by default will have a standard
Provident Fund Deduction of INR1800/- The total
amount which is deducted for PF is Nontaxable
under Income Tax Section 80C
Please note that the Provident Fund rules and regulation
are administered by the PF authority/ Government
 The company will also contribute PF contribution
equivalent to employees’ the contribution, from his
CTC.
Voluntary Provident Fund (VPF)
 Voluntary Provident Fund (VPF) is the voluntary
fund contribution from the employee towards his
provident fund account.
 This contribution is beyond the 1800 contribution
by an employee towards his EPF. The maximum
contribution under VPF is up to 100% of the Basic
Salary.
 Employers are under no obligation to contribute to
their employees’ VPF portfolio. Likewise, an
employee is also under no obligation to contribute
to the Plan.
Contributions in VPF are subject to a lock-in period of 5 years.
Employee Payroll Flexible Benefits

Leave Travel Allowance (LTA) Group Term Life Insurance (GTLI) & Group
Coverage: All Full Time Employees
Personal Accidental Insurance (GPA)-Mandatory
Coverage: All Full Time Employees
Eligibility Limits: Eligibility based on compensation is
described below Eligibility Limits: Grade-wise Coverage is as described below
for 2018-19
LTA Eligibility per
CTC in Lacks INR
year in INR GTLI GPA Premium
Bands
2.4< NA Sum Assured Sum Assured in INR
2.4 – 6 20000 A1-A5 10,00,000 10,00,000 861
6 – 10 40000 B1-B3 20,00,000 20,00,000 1,721
10 > 60000
C1-C5 40,00,000 40,00,000 3,441
D & Above 50,00,000 50,00,000 4,301
Key Policy Highlights:
 Employees need to opt in for the LTA benefit in the Key Policy Highlights:
system every year.
 Employees can redefine the LTA amount on yearly  GTLI and GPA are risk insurance coverage for all
basis. employees as per the sum assured mentioned
 Amount declared under LTA will not be part of the  In any unforeseen situation to the employee,
monthly earnings and the amount will be either nominee declared by the associate in the official
paid upon submission of LTA claim as a nontaxable joining records will be the beneficiary of this
income or taxable income in case of non- insurance
submission LTA claim with all supporting  GTLI is applicable for a natural demise
documents.  GPA is applicable only for accidental reason of
 The amount will be paid along with March salary in death, disability or hospitalization
both the cases.  In an event of accidental death, beneficiary will be
 The claim should be supported by a proof of travel. receive the sum assured covered for both GTLI and
 Claim: Organization will formally announce the GPA
dates for LTA claims and employee should submit  Premium paid for GTLI is exempted from the
the documents along with LTA form. Income Tax under section 80C.
 Only travel expenses of employee, his/her spouse,  Please refer the policy for the complete details of
Children (up two children) and their dependent GTLI and GPA.
parents, brothers and sisters (+) are reimbursable.  Above rates are applicable for 8th Aug’19 till 7th
 In order to claim the reimbursement of Aug’20.
dependent’s travel expenses, the employee must
have accompanied them during the travel. GMC (Group Medical Insurance)
 Only expenses incurred on travel within India can
Coverage: All Full Time Employees
be claimed for reimbursement.
 Expenses incurred on accommodation, recreation, Eligibility: 3 Lakhs
sightseeing etc. cannot be claimed as part of LTA.
 Tax exemption on LTA, if applicable, will be as per Key Policy Highlights:
the prevailing Income Tax rules.
 The coverage will be provided at the cost of the
 LTA exemption can be claimed two times in a block company. Premium will be borne by the company.
of four years, If LTA isn’t claimed in a particular
 Floater plan covering employee, spouse and 3
block, and then it can be carried over to the next
children
block and used in the first year of the next block
 All pre-existing elements are covered
itself.
 Maternity coverage of 60 thousand for C-Section
 Employees need to opt in for the LTA benefit in the
and 40 thousand for normal delivery
system every financial year. Employee can choose
 New born baby covered from day 1
to continue or discontinue.
 No Co-pay for employee and dependents
 Cashless facility in network hospitals
 Pre and post hospitalization coverage
 GMC cycle is from August to July of every year

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Employee Payroll Flexible Benefits
 Any new addition in the family (Marriage / Child
Birth) should be notified to HR Operations Team
immediately and in any case not later 30 days from
the date of event for empanelment.
Parental Insurance – Optional
Coverage: All Full Time Employees
Eligibility: Enrolled employees’ parents/in-laws
Coverage Premium
3 Lakhs INR 25,000/-
4 Lakhs INR 33,320/-
5 Lakhs INR 41,650/-
Key Policy Highlights:
 Parents or In-Laws can be covered under this
medical insurance or a combination of Parent and
Parent-in-law (must be opposite gender). Not
exceeding 2 people. This policy covers employee &
parents/parent in laws (1+2)
 No waiting period
 Coverage is applicable based on employee choice
 Employee may choose the coverage of their choice
and the applicable premium will be deducted from
the payroll in 3 equal installments
 New employees may declare the choice within 30
days of their joining
 Policy tenure is from 13th July till 12th July
 Existing employees can confirm their declaration
during the policy renewal time and the window to
confirm will be open for 15 days.
 Employee need to pay the premium for the
parental insurance
 Premium paid for parental insurance is deductible
from taxable income under Section 80D of Income
Tax Act.
 Age limit up to 85 years
 No Co-pay applicability
 Cashless facility in the network hospitals
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National Pension Scheme (NPS)
Coverage: All Full Time Employees
Key Policy Highlights:
NPS, a Socio-economic product, is regulated by Pension Fund
Regulatory Authority (PFRDA) under PFRDA Act. It is
mandatory for Central Government employees. NPS is now
available to employees of CPSEs, State Government, private
institutions/organizations and citizen of India between age of
18 to 60 years old, to protect their old age income security.
Investment in NPS is available to employee at individual level
and as an employee of an organization under corporate
model as well.
A. Employer’s Contribution under Corporate Model:
 Under this model, employee’s salary stack-up will
be restructured to reflect company’s contribution
to NPS of 10% basic salary. This NPS contribution
will be shown under earrings of the salary stack-up.
 This amount will be eligible for deduction under
section 80CCD (2). There is no overall cap for this
deduction except the limit of 10% of basic salary.
This deduction is additional to deduction of INR
2,00,000 (INR 1,50,000 under 80C and 80CCD(1)
plus INR 50,000 under 80CCD(1B)
B. B. Individual Model:
 Employee can contribute to NPS, not exceeding
INR50, 000 per year under Section 80CCD (1B), in
addition to above contributions under corporate
model. Employee needs pay amount directly to NPS
account under individual model. Company will not
play any role with respect to this contribution
Other Important Points:
 Portability across job and location: employee’s NPS
account will continue irrespective of the company
in which he is employed or the location where he is
doing job.
 Flexibility with investment choice: employee can
choose his asset class among equity, debit and
government debit
 Debt/Equity Market linked return
 After attaining the age of 60 years, 40% of the
accumulated amount can be withdrawn tax free
and 40% will be utilized mandatorily to purchase
annuity. And balance 20% can be utilized optionally
to purchase annuity, tax free or withdrawn by
paying tax as per the applicable tax slab at that
time.
Employee Payroll Flexible Benefits

 Before attaining the age of 60 years, 20% of the

amount can be withdrawn tax free, balance 80%
can be utilized for purchase of annuity after
completion of 10 years from the date of opening
NPS account
 Nothing can be withdrawn before completion of 10
years from the date of account opening.
 No entry or exit loads
 Simple to operate and web enabled: Employee can
log into his account, monitor his fund performance,
and change the asset class.
 Nominal fund management costs. 0.01% whereas
industry standard is 1.75% to 2.25% or above
 Well Regulated by PFRDA
 Online access available

Enrolling Process:
 One time enrolment
 Existing/New employees may give their interest through
the survey during the launch and later we will enable
the declaration to be visible in My Profile page for any
monthly declarations for future
 Deduction will happen through respective month
payroll

Documents required for employee registration with the

bank are:-
 Photograph
 Aadhaar card copy
 Self-attested copy of Pan Card Copy
 Self-attested copy of Address Proof
 Cancelled Cheque or Self attested copy of cheque
 Name. Relation, Date of birth of nominee

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