one of our employees is requesting us to provide a salary slip with an excess salary that is more than the actual Salary and he requesting us to credit his salary with excess amount to his bank account for six months to avail more loan from a bank. he is ready to return back the excess Salary amount in cash to the company, he requires it for a Bank loan,and want to reflect his excess salary in bank statement for loan purpose. Can employer has legaly right to do it for his employee, Please advice
From India, Nashik
From India, Nashik
Hi,
Not at all advisable. Please don't take risk.
By showing higher salary than actual salary and by also transferring the higher salary you are paving path to the employee to demand it legally from you after 6 months also. Also having high salary proof in hand employee will look for better offer and will present pay slip and bank statement as proof of his current salary. No professional employer will allow it.
By showing high salary by any chance if the employee is required to pay more Income Tax also and after 6 months employee might ask you to refund the excess Income tax amount deducted? Will you be able to refund it. Also if Basic salary is increased employer needs to pay higher contribution to employee's PF account. How will you recover it ?
Primarily what is the assurance the employee will return back to the company the excess salary paid to his Bank Account.
Do not encourage such request from employees.
From India, Madras
942Not at all advisable. Please don't take risk.
By showing higher salary than actual salary and by also transferring the higher salary you are paving path to the employee to demand it legally from you after 6 months also. Also having high salary proof in hand employee will look for better offer and will present pay slip and bank statement as proof of his current salary. No professional employer will allow it.
By showing high salary by any chance if the employee is required to pay more Income Tax also and after 6 months employee might ask you to refund the excess Income tax amount deducted? Will you be able to refund it. Also if Basic salary is increased employer needs to pay higher contribution to employee's PF account. How will you recover it ?
Primarily what is the assurance the employee will return back to the company the excess salary paid to his Bank Account.
Do not encourage such request from employees.
From India, Madras
on what basis you will increase his salary and reflect the same in salary slip as well credit to bank. either you have any increment of the employee ? by this way you are just inviting the problem to come in your life and make the hell. can you imagine the employee who is just requesting you now due to his own benefits can raise a claim for same increased salary. he may raise a dispute under the several authority for not paying the increased salary . So please don't act this . Because increasing salary will be impact in all other head of the salary/CTC payable. So how ill you manage it ?
From India, Rudarpur
From India, Rudarpur
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Salary-Note.doc
SALARY SHEET CALCULATION.xls