Dear All,
We are going to appoint a new employee and before joining he submitted his Salary Slip which is as follow:-
Basic - 9500.00
HRA - 4875.00
Convey - 3125.00
Total - 17500.00
Deductions
PF @ 12% of Basic - 1140.00
Canteen - 1000.00
ESIC @1.75% of Basic - 166
LWF - 5.00
Take home - 15189.00
My Questions :-
1. His gross is above 10,000/- then why company is deducting ESI. As per the candidate it is mutual understandugn between company and him becasue he want to avail the ESI benifit. Is it legal practice ?
2. If it is leagal then why it is only in Basic, not in B+HRA+Convey. According to candidate it is in Basic only because his gross is above 10,000/-. Is it leagal ?
Please provied your sugesstion with legal reference.
From India, Faridabad
1We are going to appoint a new employee and before joining he submitted his Salary Slip which is as follow:-
Basic - 9500.00
HRA - 4875.00
Convey - 3125.00
Total - 17500.00
Deductions
PF @ 12% of Basic - 1140.00
Canteen - 1000.00
ESIC @1.75% of Basic - 166
LWF - 5.00
Take home - 15189.00
My Questions :-
1. His gross is above 10,000/- then why company is deducting ESI. As per the candidate it is mutual understandugn between company and him becasue he want to avail the ESI benifit. Is it legal practice ?
2. If it is leagal then why it is only in Basic, not in B+HRA+Convey. According to candidate it is in Basic only because his gross is above 10,000/-. Is it leagal ?
Please provied your sugesstion with legal reference.
From India, Faridabad
it seems totaly fake ,if he is frm manufacturing then general practice is to deduct pf only upto 6500,secondly no one will put more than 800 in conveyance,third thing is totaly amazing that esi deduction on basic ,firstly employe having gross above 10000 is not eligible for esi,taking continuty of contribution period as a factor then also it should to be deducted on gross salary,why dont u ask him for his last bank statement or contact hr of his last company.
From India, Delhi
From India, Delhi
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ESI deduction.doc
ESI contribution rates lowering.pdf