I am working with one comapny and the matter is when we all are given Appointment Letter, we have got the package in CTC, now co. authorities deduct Employers share of ESIC from our salary. Can They do this ?
When we all asked the reason then they have explained the same reason.
Can you all help me out?
Regards,
Ramesh
From India, Vadodara
When we all asked the reason then they have explained the same reason.
Can you all help me out?
Regards,
Ramesh
From India, Vadodara
Dear Ramesh,
Actually according to the law it must be paid by the employer it self , but many company made deduction from employee side , for this before getting employed you have to asked about complete salary break up with them,
and about all the deduction and what would be your take home salary.
Kind Regards,
Bhawani Singh.
From India, Pune
Actually according to the law it must be paid by the employer it self , but many company made deduction from employee side , for this before getting employed you have to asked about complete salary break up with them,
and about all the deduction and what would be your take home salary.
Kind Regards,
Bhawani Singh.
From India, Pune
CTC - means company's total expenditure on you inclusive of all kind of employer's contributions.
Gross Salary- Gross salary is your actual salary inclusive of employee's contributions towards, ESIC, EPF, Professional tax, Income Tax etc.
Net Salary - Salary what you get in hand afetr deductions of employees share of ESIC, EPF, Professional Tax, Income Tax etc.
Hope things are clear to you.
regards,
Kamal
From India, Pune
173Gross Salary- Gross salary is your actual salary inclusive of employee's contributions towards, ESIC, EPF, Professional tax, Income Tax etc.
Net Salary - Salary what you get in hand afetr deductions of employees share of ESIC, EPF, Professional Tax, Income Tax etc.
Hope things are clear to you.
regards,
Kamal
From India, Pune
Dear,
This below statement is fully correct as per the company law.
ESI Employeers contribution must be written after the Gross Earning in the Offer agreement letter. Which means that the company is paying on the behalf of you but this is also a cost for the company and as a company they need to show in the books of accounts.
For more details feel free to call us at +91 9379994111
or mail me at
From India, Bangalore
This below statement is fully correct as per the company law.
ESI Employeers contribution must be written after the Gross Earning in the Offer agreement letter. Which means that the company is paying on the behalf of you but this is also a cost for the company and as a company they need to show in the books of accounts.
For more details feel free to call us at +91 9379994111
or mail me at
From India, Bangalore
The company may be showing in CTC, but it is not permissible under ESI Act to deduct employer's contribution from the wages of the employee. It invites penal action under the Act.
B.Saikumar
Mumbai
From India, Mumbai
B.Saikumar
Mumbai
From India, Mumbai
I agree with view expressed by Kamal.
Employer\'s contribution to ESI is the cost of the company incurred on the employee and the employer is right in including it in the CTC. It is outside the gross pay, but it is definitely a part of CTC.
From India, Pune
Employer\'s contribution to ESI is the cost of the company incurred on the employee and the employer is right in including it in the CTC. It is outside the gross pay, but it is definitely a part of CTC.
From India, Pune
@ B.Saikumar
CTC and Wages are two different heads for calculating an employees benefits and compensation entitlement.
Wages...roughly we can say is the monthly gross salary.
No Act prohibits an employer to add/show any kind of employer's side contibution for its employees in the CTC.
From India, Pune
CTC and Wages are two different heads for calculating an employees benefits and compensation entitlement.
Wages...roughly we can say is the monthly gross salary.
No Act prohibits an employer to add/show any kind of employer's side contibution for its employees in the CTC.
From India, Pune
Dear Ramesh,
Before implimentaion of ESIC deduction suppose your CTC was 13000/-pm and it include employers contribution upon PF,PT etc.In the same period your net salary will be suppose 10500/- pm.But after duduction of ESIC ER & EE Contrubution your net salary comes to suppose9900/- pm But the EE Deductiion is suppose only 270/- pm and your net salary should be 10500-270 i.e10230 but it is coming Rs.9900/- This may prove that Employer is deducting his contribution from your salary and this may lead to penal provision as said by Shri Sai Kumarji.
So this is totaly wrong and not fair --illegal also!
Mangesh Wakodkar
Aurangabad
From India, Pune
Before implimentaion of ESIC deduction suppose your CTC was 13000/-pm and it include employers contribution upon PF,PT etc.In the same period your net salary will be suppose 10500/- pm.But after duduction of ESIC ER & EE Contrubution your net salary comes to suppose9900/- pm But the EE Deductiion is suppose only 270/- pm and your net salary should be 10500-270 i.e10230 but it is coming Rs.9900/- This may prove that Employer is deducting his contribution from your salary and this may lead to penal provision as said by Shri Sai Kumarji.
So this is totaly wrong and not fair --illegal also!
Mangesh Wakodkar
Aurangabad
From India, Pune
I agree with you Prasoon that the employer may be including the employer's deduction in CTC but it does not entitle him to deduct his contribution of ESI from the wages of receivable by the employee. That's what I said.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
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PF,ESI WORKING SPECIMEN.xls