Dear All,
One employee of my organization was under ESIC before his appraisal, his appraisal falls i the month of July. After appraisal his salary became high and he was out of ESIC coverage but as per ESIC deductions were made till Sep month. Because of this his CTC became high. Now with Oct month salary payroll department deducted his CTC and said that now ESIC part is not added that is why CTC has been lowered.
Kindly suggest is it fair to deduct the CTC of employee in any such incident. Prior salary was 1.84 LPA, Appraised salary in September was 2.45 LPA and lowered salary is 2.36 LPA...
From India, Delhi
One employee of my organization was under ESIC before his appraisal, his appraisal falls i the month of July. After appraisal his salary became high and he was out of ESIC coverage but as per ESIC deductions were made till Sep month. Because of this his CTC became high. Now with Oct month salary payroll department deducted his CTC and said that now ESIC part is not added that is why CTC has been lowered.
Kindly suggest is it fair to deduct the CTC of employee in any such incident. Prior salary was 1.84 LPA, Appraised salary in September was 2.45 LPA and lowered salary is 2.36 LPA...
From India, Delhi
Naturally when the employer is not contributing towards ESI the cost to company would come down. At the same time, your take home salary will increase. This reduction in CTC is due to exclusion of one component by the operation of law.There is nothing wrong in it. Now when you become out of ESI, the employer will put you under some medical insurance, say, medi claim policy for yourself and your family and also an Employees Compensation Policy, and the premia paid for these policies may be taken as cost to company and added to the CTC, then naturally your CTC would again go up. Is this okay?
The Lesson: It should be the gross salary that should be looked upon and not the CTC whenever you accept an employment offer. CTC will include so many components which are not directly payable to you but are either costs to be incurred by the employer or incomes that you will earn only on achieving certain targets.
Madhu.T.K
From India, Kannur
4248The Lesson: It should be the gross salary that should be looked upon and not the CTC whenever you accept an employment offer. CTC will include so many components which are not directly payable to you but are either costs to be incurred by the employer or incomes that you will earn only on achieving certain targets.
Madhu.T.K
From India, Kannur
ESI will cover CTC upto Rs 15000/=, ESI contribution deduction will continue till the end of half yealy even salary increment made during this period.
suppose A Monthly salary is Rs 15000/= per month and salary increment in the month of june, then it ESI will continue till sept (completion of first half year)
From India, Delhi
suppose A Monthly salary is Rs 15000/= per month and salary increment in the month of june, then it ESI will continue till sept (completion of first half year)
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Difference between CTC & Grosss.pdf
CTC Calculator.xls