My Employer is telling My CTC amount is inclusive of Employer's contribution of Gratuity and PF. So, They are deducting Both Employer & Employee contribution towards PF & Gratutity in my salay.Please guide weather employer can deduct Employer contribution of PF from Employee salary.
From India, Mumbai
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1From India, Mumbai
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Employer is not in a position to deduct his own share of EPF contribution from the salary of employee. Similarly, gratuity being the responsibility of employer alone, he is not suppose to recover it from employee.
Under CTC terms, all costs that the employer incur due to your employment are taken as salary. But it will not have any legal validity. Therefore, in the pay slips no share of employer like ESI, PF, Gratuity, should be shown.
Regards,
Madhu.T.K
From India, Kannur
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Under CTC terms, all costs that the employer incur due to your employment are taken as salary. But it will not have any legal validity. Therefore, in the pay slips no share of employer like ESI, PF, Gratuity, should be shown.
Regards,
Madhu.T.K
From India, Kannur
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Dear Sir,
As you said"Employer is not in a position to deduct his own share of EPF contribution from the salary of employee. Similarly, gratuity being the responsibility of employer alone, he is not suppose to recover it from employee", But my employer is deducting Both EPF & Gratuity in my salary from last two years.
If i go legaly can i get back the deducted amount.If yes please guide me the legal process.We are almost 20000 employees are facing same problem.
Find the attachments of Offer letter & Payslip.
Please note:Dont disclose this letters & Company name.
From India, Mumbai
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As you said"Employer is not in a position to deduct his own share of EPF contribution from the salary of employee. Similarly, gratuity being the responsibility of employer alone, he is not suppose to recover it from employee", But my employer is deducting Both EPF & Gratuity in my salary from last two years.
If i go legaly can i get back the deducted amount.If yes please guide me the legal process.We are almost 20000 employees are facing same problem.
Find the attachments of Offer letter & Payslip.
Please note:Dont disclose this letters & Company name.
From India, Mumbai
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In your offer letter the company has not offered any salary but has only mentioned that by appointing you, the company would cost .... amount annually. The wording is not salary. Before accepting such an offer you should have asked and confirmed what would be your monthly "salary". Similarly, in the pay slip also, the employer's contribution towards PF and monthly gratuity are not given. As such there is no illegality to fight against the employer.
However, the practice of offering salary indirectly by showing CTC is required to be changed and for that an initiative is required. For that legal action may not find way in the absence of any wrong deduction such as deduction for gratuity and deduction for employer's share of EPF/ESI contributions. Yes, the only ground of argument is that you were not offered any salary in the appointment order.
Regards,
Madhu.T.K
From India, Kannur
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However, the practice of offering salary indirectly by showing CTC is required to be changed and for that an initiative is required. For that legal action may not find way in the absence of any wrong deduction such as deduction for gratuity and deduction for employer's share of EPF/ESI contributions. Yes, the only ground of argument is that you were not offered any salary in the appointment order.
Regards,
Madhu.T.K
From India, Kannur
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Dear Babu,
This was a confidential document of the company, and uploading it over the net is not an ethical practice. The CTC (Cost to Company) includes the employer's contribution towards PF/ESI but not the Gratuity.
It is also questionable how the company offers gratuity in the monthly breakup and includes it in the CTC (which is not correct). Additionally, how do they include the Executive Allowance in the Salary Slip when it is not offered to the employee in the offer letter? It seems that the company is hiding something.
Regards,
Pankaj Chandan
From India, New delhi
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This was a confidential document of the company, and uploading it over the net is not an ethical practice. The CTC (Cost to Company) includes the employer's contribution towards PF/ESI but not the Gratuity.
It is also questionable how the company offers gratuity in the monthly breakup and includes it in the CTC (which is not correct). Additionally, how do they include the Executive Allowance in the Salary Slip when it is not offered to the employee in the offer letter? It seems that the company is hiding something.
Regards,
Pankaj Chandan
From India, New delhi
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