Hi Guys, don't know in the first place if I must have posted below query over here as a Discussion Thread, but just needed a quick reply.
My query is: Recently my Company merged with another firm & the coalition so formed is a Limited Liability Company. Now today the HR states that from now onward they will start deducting EPF & ESIC share. But the questionable thing is that they are saying that whole 24% of Basic Salary(12% Employee & 12% Employer Contribution) will be deducted from Employee's Salary. Also they state that all the 6.5% Contribution of Employee's Gross Salary(1.75% Employee & 4.75% Employer Contribution) will be deducted from Employees Salary. Along with this they have recently got us registered in the EPF Organization & say that they will also Deduct EPF & ESIC for the months of November, December 2015 & January 2016, with current months EPF & ESIC deductions.
As an explanation to this, they told Us that the Cost To Company written in our Offer Letter contains all deductions to be made from Employer's share too.
All I want to know is that 'Is it Legal what they are telling us. If not what can we do as an Employee'?
Quick Response will be appreciated. Thanks in advance
From India, Didwana
My query is: Recently my Company merged with another firm & the coalition so formed is a Limited Liability Company. Now today the HR states that from now onward they will start deducting EPF & ESIC share. But the questionable thing is that they are saying that whole 24% of Basic Salary(12% Employee & 12% Employer Contribution) will be deducted from Employee's Salary. Also they state that all the 6.5% Contribution of Employee's Gross Salary(1.75% Employee & 4.75% Employer Contribution) will be deducted from Employees Salary. Along with this they have recently got us registered in the EPF Organization & say that they will also Deduct EPF & ESIC for the months of November, December 2015 & January 2016, with current months EPF & ESIC deductions.
As an explanation to this, they told Us that the Cost To Company written in our Offer Letter contains all deductions to be made from Employer's share too.
All I want to know is that 'Is it Legal what they are telling us. If not what can we do as an Employee'?
Quick Response will be appreciated. Thanks in advance
From India, Didwana
Also would like to state that, they didn't even get any document signed from us, so it leaves us wondering how they as a company on their own can open account for all the existing employees, without any prior information & without getting any kind of document signed from us
From India, Didwana
From India, Didwana
Hi
Yes if you are declaring the package as CTC then ER & EE share of ESIC & EPF shall be considered as part of CTC, but should not declare in Gross pay
Back wage contribution for ESI & EPF shall not be adjusted in upcomming month deductions. It has to borne by the company itself
From India, Bangalore
639Yes if you are declaring the package as CTC then ER & EE share of ESIC & EPF shall be considered as part of CTC, but should not declare in Gross pay
Back wage contribution for ESI & EPF shall not be adjusted in upcomming month deductions. It has to borne by the company itself
From India, Bangalore
Actually In CTC employer has a right to mention Employer contributions of ESI and PF. Employee has to verify at the time of receiving offer letter about CTC components in that company.
Regards,
Jagadeesh.G
From India, Solon
Regards,
Jagadeesh.G
From India, Solon
Hi Mr. Jagdish, with respect to what you wrote in your reply, in our case Actually the Offer Letter doesnt declare any of the deductions but simply says what will be our current CTC & we have to stick with the company for next 6 months & nothing else. Nowhere in the Offer Letter they have mentioned about any such deductions, nor did the HR take the lain to tell Employees in advance about any such deductions
From India, Didwana
From India, Didwana
Dear Dhirendra
Mr. Jeevarathnam has given you the correct reply. If your offer letter states that CTC word, then obviously the statutory deductions also will be deducted from your pay package only. At the time of appointment the same was not applicable, but when they registered their establishment for ESI and EPF, then obviously the same will be deducted from your pay package only. But the arrears cannot be recovered from the employees salary and it should be borne by the company itself. Only current month deduction can be effected.
From India, Kumbakonam
Mr. Jeevarathnam has given you the correct reply. If your offer letter states that CTC word, then obviously the statutory deductions also will be deducted from your pay package only. At the time of appointment the same was not applicable, but when they registered their establishment for ESI and EPF, then obviously the same will be deducted from your pay package only. But the arrears cannot be recovered from the employees salary and it should be borne by the company itself. Only current month deduction can be effected.
From India, Kumbakonam
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