Very high mediclaim deduction from salary. Is it legal to force medicalim without an opt-out option?

[User_b8fc88b0]

U

User_b8fc88b0
PARTICIPANT
February 5, 2025 at 11:49 am

Hi everyone,

I recently received my CTC breakdown from my employer, and I noticed that they are deducting ₹4,000 per month for 6 months (₹24,000 per year) from my salary as my contribution to Mediclaim insurance. The company’s contribution is ₹23,000 per year, making the total Mediclaim cost ₹47,000 per year for a coverage of ₹15.5 lakh. This is around 20% of my in hand salary which is too much.

This deduction is also not mentioned in the CTC breakdown that has been provided to me.

Is it legal for an employer to force employees to pay for Mediclaim without an opt-out option? I also can’t change the coverage or tier of insurance.
Is there anything I can do about this?

[Link to ctc breakdown pdf](https://drive.google.com/file/d/1RSQQyzl8ZJj_OyCeUztgVAS6FYlipQp1/view?usp=drivesdk)

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[Silentavinash5204]

S

Silentavinash5204
PARTICIPANT
February 5, 2025 at 12:00 pm

Typically we get to have option for selecting tiers mediclaim insurance and even completely opt-out as well. If it was Mandatory they should have mentioned it in the CTC breakup. I would suggest take this with HR and ask for hike in CTC for the equivalent amount.

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[User_b8fc88b0]

U

User_b8fc88b0
OP
February 5, 2025 at 12:15 pm

I don’t think a hike in CTC would be possible. I’ll try to talk to HR once again. They were very firm in saying that the deduction would be mandatory.

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[Silentavinash5204]

S

Silentavinash5204
PARTICIPANT
February 5, 2025 at 12:02 pm

They mentioned it as prorata, so it will be 2k per month, not 4k.. check

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[User_b8fc88b0]

U

User_b8fc88b0
OP
February 5, 2025 at 12:16 pm

Just had a chat with HR. They said it would be deducted in 4k intervals for 6 months.

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[User_7ad57094]

U

User_7ad57094
PARTICIPANT
February 5, 2025 at 1:16 pm

It does mention at the very bottom that the employee contribution is required indicating that its mandatory. However, if you joined mid financial year, the deduction should be pro-rated.

>(Ref. Sr.No.11)

>Company’s contribution towards Hospitalization / Mediclaim Insurance: In addition to the Company’s contribution towards Hospitalization / Mediclaim Insurance, the employee shall be **required** to contribute Rs.23,079/- per annum for the financial year 2024-25 or in prorata thereof, deducted in six equal installments in accordance with the ongoing Mediclaim policy. The same is subject to change for the respective financial year.

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[User_b8fc88b0]

U

User_b8fc88b0
OP
February 5, 2025 at 3:05 pm

Is it lawful to keep mediclaim mandatory and force only one coverage option?

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[Vikasknight404]

V

Vikasknight404
PARTICIPANT
February 5, 2025 at 6:03 pm

You need to understand the meaning of ctc. It’s the cost that the company is spending on you. Nothing is deducted from your ctc. Your salary, insurance, other benefits and everything is added together and called ctc.

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