jbk28
I am a foreign teacher working in an international school in India. My employer is apparently deducting not only my 12% PF payment from my salary but also their 12% contribution. Is this legal?
From India, Mumbai
Nileshcb
11

No he can't deduct his contro from employees salary.... but before deciding further, pls check whether they are deducting employer contro from your monthly payslip? then its illegal....howeverr if they have considered the employer contro in CTC, then it's a legal.
From India, Mumbai
jbk28
So a company can make the employee pay the company share of PF contribution simple by saying it is a Cost To The Company?? How is that a social security compact between employees and employers??
From India, Mumbai
saswatabanerjee
2392

The concept of cost to company was created first to show the total cost of employment and then used to make employees believe that are getting more than they actually are.
Your employment Co tract, or appointment letter would specify your remuneration. If it says xyz amount is your cost to comoany, or it says that the remuneration is on CTC basis, then they have provided adequate disclosure. It’s just that your gross earnings are much lower than you thought it was. But in such cases you should have asked and clarified what CTC is and how it affects your take home pay

From India, Mumbai
ANIL RAINA
18

Hi,
Deduction of employer's contribution from Gross Salary of an employee is illegal.
CTC is a notional concept.....just to determine total cost of an employee to the company & may include host of things. It does not fall under the definition of "wages".
Regards
Anil Raina
Mob: 9810180148

From India, Delhi
PRABHAT RANJAN MOHANTY
589

Dear JBK28,
Your employer can only deduct employee share from the salary @12% but not more than that. You can raise a complaint with Labour Office of the area enclosing your salary slip. You need to check your appointment letter issued by the employer before putting the complaint.

From India, Mumbai
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