Dear rabina,
wahat Arhana has mentioned is correct.CTC is a diffrenet concept that the gross salary.CTC stands for cost to company.So it also includes employer's contribution to your ESIC account as it is also a cost to the organization.
I dont think they have done it woth some intentions.It is just that government has changed the clause.
Anywasy ESIC is good benefit and will help you alot.
With regards,
Sujata
From China, Beijing
wahat Arhana has mentioned is correct.CTC is a diffrenet concept that the gross salary.CTC stands for cost to company.So it also includes employer's contribution to your ESIC account as it is also a cost to the organization.
I dont think they have done it woth some intentions.It is just that government has changed the clause.
Anywasy ESIC is good benefit and will help you alot.
With regards,
Sujata
From China, Beijing
dear rabina,
your empoyer can deduct only 1.75% for esicontribution from ur salary. balance has to pay by employer. speak to ur mgt they will get to u easily.
pls find the attachment for u and ur employer's reference.
the file is in notepad format u can download it from the website also
ESIC - Headquarters' Office
Rajesh Chauhan
From India, Gurgaon
your empoyer can deduct only 1.75% for esicontribution from ur salary. balance has to pay by employer. speak to ur mgt they will get to u easily.
pls find the attachment for u and ur employer's reference.
the file is in notepad format u can download it from the website also
ESIC - Headquarters' Office
Rajesh Chauhan
From India, Gurgaon
If he or she resigns who will run his family and who will get a job for him?
Please ndo not give such advices as such advices have no meaning.
Then the next advice is to argue with the Company. If he argues and then if he loses the jiob who will help him.
The question is whether the Company is right in doing it or not and the answer is it is illegal on the part of the Company to do this.The person has asked only this question and has never asked for advice as to what he or she has to do!!!
His question is answered.... and what he or she has to do is left to him and no advice was sought
T Sivasankaran
From India, Chennai
368Please ndo not give such advices as such advices have no meaning.
Then the next advice is to argue with the Company. If he argues and then if he loses the jiob who will help him.
The question is whether the Company is right in doing it or not and the answer is it is illegal on the part of the Company to do this.The person has asked only this question and has never asked for advice as to what he or she has to do!!!
His question is answered.... and what he or she has to do is left to him and no advice was sought
T Sivasankaran
From India, Chennai
Dear Aanchal,
Please note that your query is not almost same its almost diffrent. You have to contribute to the extent of 1.75% of gross to as your contribution but at the same time employer also should pay 4.75% as his contribution. If salary is reduced by even a single rupee that is incorrect. You ask for payslip & request the employer in writing to correct your salary. If reqd, you may approach the local ESI Manager for guidance & help.
Regards,
Generalist 91
From India
Please note that your query is not almost same its almost diffrent. You have to contribute to the extent of 1.75% of gross to as your contribution but at the same time employer also should pay 4.75% as his contribution. If salary is reduced by even a single rupee that is incorrect. You ask for payslip & request the employer in writing to correct your salary. If reqd, you may approach the local ESI Manager for guidance & help.
Regards,
Generalist 91
From India
Dear All, Can anybody please advise, what can be done if the management is not ready to give the difference amount. Regards, Pinky
From India, Ahmadabad
From India, Ahmadabad
Let us first understand the meaning of CTC - means Cost to Company, so whatever the company is expending on you whether it is in form of P.F., ESIC, Gratuity, Concession in Canteen all these will be the part of CTC
So it is the prerogative of Management to deduct the Employer's Part of ESIC for your Salary.
Txs
Rajiv Singh
From India
So it is the prerogative of Management to deduct the Employer's Part of ESIC for your Salary.
Txs
Rajiv Singh
From India
Dear all,
I am working in PVT Ltd company and i have joined that company from april 2010. at the time of joining they have given me a salary structure where it is mention that my GROSS sallary is 10500 and CTC is also 10500. At that time HR didn't tell me about ESI that it will be deducted from next month or vice versa. Now from may Company start deducting ESI from my salary employee contribution as well as Employer's contribution from my sallary in the form of adhoc allowance. Company have deducted my gross salary without any information when i want information from company about this. then HR replied that in our company we do like this for ESI. Now company deduct its 4.75% as well as 1.75% from my sallary. Please guide me what to do. Company can deduct my ESI from my ADHOC ALLOW? Please reply for this.
Sallary Structure at
joining time
ADHOC ALLOW : 1950
BASIC EARNED : 7000
BONUS : 700
HRA : 350
TELEPHONE ALLOWANCE: 500
GROSS SALLARY : 10500
CTC : 10500
Sallary Structure Shown
in salary slip after ESI
Implemented
ADHOC ALLOW : 1475
BASIC EARNED : 7000
BONUS : 700
HRA : 350
TELEPHONE ALLOWANCE: 500
GROSS SALLARY : 10025
Employer contribution ESI: 475
CTC : 10500
Thanks & regards
Gagan
From India, Madras
I am working in PVT Ltd company and i have joined that company from april 2010. at the time of joining they have given me a salary structure where it is mention that my GROSS sallary is 10500 and CTC is also 10500. At that time HR didn't tell me about ESI that it will be deducted from next month or vice versa. Now from may Company start deducting ESI from my salary employee contribution as well as Employer's contribution from my sallary in the form of adhoc allowance. Company have deducted my gross salary without any information when i want information from company about this. then HR replied that in our company we do like this for ESI. Now company deduct its 4.75% as well as 1.75% from my sallary. Please guide me what to do. Company can deduct my ESI from my ADHOC ALLOW? Please reply for this.
Sallary Structure at
joining time
ADHOC ALLOW : 1950
BASIC EARNED : 7000
BONUS : 700
HRA : 350
TELEPHONE ALLOWANCE: 500
GROSS SALLARY : 10500
CTC : 10500
Sallary Structure Shown
in salary slip after ESI
Implemented
ADHOC ALLOW : 1475
BASIC EARNED : 7000
BONUS : 700
HRA : 350
TELEPHONE ALLOWANCE: 500
GROSS SALLARY : 10025
Employer contribution ESI: 475
CTC : 10500
Thanks & regards
Gagan
From India, Madras
Dear Gagan,
As per the ESI Act the Company has to pay its contribution of 4.75%. The Company do not have any right to deduct it from the employee. But you have agreed for a CTC of Rs.10,500/- before ESI amendment. After the amendment, what ever Company spends for you is a cost to them. So they have deducted 6.5% from your CTC. Now the solution is 1) Try to negotiate with management and hike your CTC to match the loss. 2) Try for a new job with a transparent deal. 3)You can challenge the present employer by producing the payslips in the Labour court if you are prepared to loose your present job.
Rams.
From India, Coimbatore
As per the ESI Act the Company has to pay its contribution of 4.75%. The Company do not have any right to deduct it from the employee. But you have agreed for a CTC of Rs.10,500/- before ESI amendment. After the amendment, what ever Company spends for you is a cost to them. So they have deducted 6.5% from your CTC. Now the solution is 1) Try to negotiate with management and hike your CTC to match the loss. 2) Try for a new job with a transparent deal. 3)You can challenge the present employer by producing the payslips in the Labour court if you are prepared to loose your present job.
Rams.
From India, Coimbatore
Dear All,
Please under Stand CTC means Cost to Company,
I.e. the amount compnay is spending after you.
The ESI limit is raised from 10000 to 15000 then ultimately you will come under coverage
Earlier : 10,604 ESI 1.75%= NIL ESI 4.75% NIL
Now : 10,604 ESI 1.75%= 186/- ESI 4.75% 504/-,
So only the amount of Rs. 186/- will be deducted from your existing Gross salary. the company has to pay their contribution.
They cannot reduce your gross, if they do so you can challenge in the labour court. Go ahead
Regards,
SIDMAN
From India, Madras
Please under Stand CTC means Cost to Company,
I.e. the amount compnay is spending after you.
The ESI limit is raised from 10000 to 15000 then ultimately you will come under coverage
Earlier : 10,604 ESI 1.75%= NIL ESI 4.75% NIL
Now : 10,604 ESI 1.75%= 186/- ESI 4.75% 504/-,
So only the amount of Rs. 186/- will be deducted from your existing Gross salary. the company has to pay their contribution.
They cannot reduce your gross, if they do so you can challenge in the labour court. Go ahead
Regards,
SIDMAN
From India, Madras
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PF,ESI WORKING SPECIMEN.xls