Wednesday, October 1, 2014

Cost Cutting by Companies

I cant stop writing about the circular received from my Employer. Most of  India Based Traditional engineering Companies and Manufacturing Industries used to Subsidize Lunch and Hot Beverages such as Tea & Coffee. Even My Employer did almost similar as its peer level.

Lunch was Subsidized and charged to each employee of Rs 5 Whereas Tea & Coffee  Subsidized but with Nil Charges to Employee. Remaining Money will be paid by employer to Canteen Contractor.  

Cost Cutting

Yesterday circular reveals that " Employee has to bear Rs 10 Towards Meal, Re 1 Towards Each cup of Coffee/ Tea". Really shocking that " Tea & Coffee are chargeable though it is just 100 Paisa". 

In My Payslip, there will be many outgo. Term Insurance, Health Insurance, Food, Tea& Coffee are the few Outgo which Employee gets as benefits during Joining, Now it is on deductible way.

In Two/three decades, i am foreseeing Water will be Heavily chargeable Item. It will be Biggest outgo than Tax....Refer Below Picture ( Courtesy: MoneyAisle TV) though it is little Outdated & $ terms. Companies are bearing the cost of Water; Will it in Future !!!

True Cost of Water