I have a monthly salary of $12,000, and in my payslip, there are two deductions. One is labeled as ESIC contribution, amounting to $544, and the other is ESIC deduction, which is $201. As an employee, I believe I am only required to pay 1.75% of my salary, which is $210, towards ESIC. I also understand that 4.75% is the responsibility of my employer to cover, not me, and that they are deducting their share from my salary. Please advise me on this matter and let me know if I am mistaken in my understanding.
From India, New Delhi
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From India, New Delhi
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Hello! It would be easier for others to understand if you could attach your salary slip and annexure of appointment mentioning the CTC offered to you.
Your understanding about the contribution is correct, i.e., 1.75% is the employee contribution and 4.75% is the employer contribution. Only the employee contribution is deducted from the Gross Salary in the Salary Slip. However, if your company is deducting 4.75% as well, then there has to be something attached to it.
Again, the figures you've mentioned do not align with the actual amount if your gross happens to be $12k. It would be great if you could enclose a copy of the payslip.
From India, Ahmedabad
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207Your understanding about the contribution is correct, i.e., 1.75% is the employee contribution and 4.75% is the employer contribution. Only the employee contribution is deducted from the Gross Salary in the Salary Slip. However, if your company is deducting 4.75% as well, then there has to be something attached to it.
Again, the figures you've mentioned do not align with the actual amount if your gross happens to be $12k. It would be great if you could enclose a copy of the payslip.
From India, Ahmedabad
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Hi Shiva,
You are right. As per ESIC, employee contribution is 1.75% of the basic, which will be deducted from your CTC, and employer contribution is 4.75%, which should not be deducted from your CTC.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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You are right. As per ESIC, employee contribution is 1.75% of the basic, which will be deducted from your CTC, and employer contribution is 4.75%, which should not be deducted from your CTC.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Hi Shiva,
You are correct. As per ESIC, the employee contribution is 1.75% of the gross, which will be deducted from your CTC, and the employer's contribution is 4.75%, which should not be deducted from your CTC. It should be paid separately by the employer.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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You are correct. As per ESIC, the employee contribution is 1.75% of the gross, which will be deducted from your CTC, and the employer's contribution is 4.75%, which should not be deducted from your CTC. It should be paid separately by the employer.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Hi Shiva,
It seems that there is something wrong with the bifurcation and contributions stated by you. You are right that ESIC is 1.75%, but kindly check with your HR department for more clarification and also go through your offer/appointment letter properly.
Hope your query will be resolved at your HR department itself.
Thanks,
Bijay
From India, Vadodara
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It seems that there is something wrong with the bifurcation and contributions stated by you. You are right that ESIC is 1.75%, but kindly check with your HR department for more clarification and also go through your offer/appointment letter properly.
Hope your query will be resolved at your HR department itself.
Thanks,
Bijay
From India, Vadodara
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You are right. As per ESIC, employee contribution is 1.75% which will be deducted from your gross, and employer contribution is 4.75% which should not be deducted from your salary, as it has to be contributed from the employer's end.
From United States, Troy
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From United States, Troy
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IT IS DEPAND ON YOUR CTC STRACTURE. ASK YOUR EMPLOYER TO PAY YOU THE AMOUNT FIXED AS TAKE HOME SALARY AT THE TIME OF APPOINTMENT.
From India, Delhi
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From India, Delhi
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1.75% is the employee's contribution deductible from the gross salary, while 4.75% is the employer's contribution. Although this 4.75% is not deductible from the employee's salary, it certainly contributes to the "COST TO COMPANY." It is essential to understand this aspect properly in terms of the offer of appointment.
From India, Delhi
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From India, Delhi
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Rs. 12000/- is cost to company (CTC) and your Gross Salary is Rs. 11456/- wherein Employers contritbution of Rs. 544/- is added as CTC part and your deduction is Rs. 201 is employees contribution.
From India, Ahmadabad
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From India, Ahmadabad
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Dear All,
If the employer has not issued or issued any letter of appointment to an employee and continues to deduct the employer's share (both as applicable i.e. EPF and/or ESI), is it a wrong practice? Being an HR professional, I have come across some candidates whose salary slip does reflect similar elements in the deduction column, and hence the take-home salary comes on the lower side (even if they are communicated the take-home salary—on paper if an appointment letter is issued or verbally). When asked, they convince the employee that it is also a part of their salary/CTC and it is perfectly right to deduct the employer's share in this manner. What should be done, and why is it so?
Thanks and Regards,
From India, Delhi
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If the employer has not issued or issued any letter of appointment to an employee and continues to deduct the employer's share (both as applicable i.e. EPF and/or ESI), is it a wrong practice? Being an HR professional, I have come across some candidates whose salary slip does reflect similar elements in the deduction column, and hence the take-home salary comes on the lower side (even if they are communicated the take-home salary—on paper if an appointment letter is issued or verbally). When asked, they convince the employee that it is also a part of their salary/CTC and it is perfectly right to deduct the employer's share in this manner. What should be done, and why is it so?
Thanks and Regards,
From India, Delhi
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