Version Control

Version Date Author Reviewer Approver Notes

1.0 25-January-2018 Padmini Vinay HR Management Head HR Introduction of EMI slabs
2.0 11-December-2018 Padmini Vinay HR Management Head HR Change in applicable reason and EMIs

Human Resources Company Confidential Document – Version 2.0 1

 Guidelines for Salary Advance

Objective:

To help and support employees during periods of personal financial emergency

Terms and conditions:

1. Applicable only for confirmed core employees of Teamlease and group

companies.

2. Salary advances can be availed/exercised only on need basis for the

following reasons:
 Medical emergency for self and immediate family members (Spouse,
parents/ parents in law and children)
 Marriage (self & sibling)
 Higher education (self)
 Children education

Applications for a salary advance should be accompanied by copies of the

supporting correspondence and documents, wherever applicable.

3. Approval of salary advance requests will be at the sole discretion of the

Company.

4. An employee can apply for a salary advance only if he/she has completed
one year of continuous employment with the Company and the eligibilities
will be as follows:

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 Tenure Eligibility
Minimum Maximum
0-1 year Not eligible
1-3 years 1 month’s Gross Salary 3 month’s Gross Salary
3 years and above 1 month’s Gross Salary 6 month’s Gross Salary

5. On approval, the sanctioned amount shall be disbursed by way of a bank

transfer to the employee’s bank account.

6. Interest and taxability of salary advances will be subject to the provisions of

law currently in force.

7. An employee having a previous recovery balance cannot apply for a further

salary advance until the previous balance is fully repaid/ recovered.

8. There should be at least a gap of 6 months between clearing a previous

advance and applying for a fresh advance.

9. All salary advance requests have to be recommended by the respective

SBU/functional head.

Process flow:
1. Employee to send a mail request to line manager/ reporting head.
2. Reporting head notifies the SBU/functional head for recommendation.
3. On recommendation, reporting manager to forward the request to HRBP
for approval.
4. Employee to submit the relevant supporting docs to HRBP
5. HRBP to validate the request and take Head HR approval and share the
approval with HR Operations team.
6. HR Operations team updates necessary records and forward to Finance
team for processing the bank transfer.

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Recovery Process:
The monthly deduction/recovery shall be calculated based on the amount
requested and a maximum of 10 EMIs will be allowed and deduction will be
made through salary deduction.

Income-tax Provisions:
1. If a loan is given by an employer to the employee (or any member of his
household), it is a perquisite chargeable to tax. It is taxable on the following
basis
a. The interest on maximum outstanding monthly balance.
b. The interest will be based on SBI Lending Rates as specified.
c. The perquisite will be value of Interest as per SBI Guidelines minus
actual interest, if any, recovered from the employee.

2. Exception to this would be any loan made available for Medical

Treatment in respect of diseases specified in rule 3A. This exception will
be not available to the extent of amount received from the Insurance
Company under any Mediclaim Policy. In summary, any loan given to an
employee except for meeting Medical Emergencies will be treated as
Perquisite and tax deducted on the same. The tax will applicable as per
the tax slab under which the employee falls. However, where the
amount of loan is less than INR 20,000, it will not be treated as
Perquisite.

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