Is it possible that my net take-home is lower than my basic salary? I have not taken any leaves, nor do I have any loan against my name. As far as I know, it is not possible, but my HR is challenging that it is possible.
From India, Kolkata
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From India, Kolkata
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Mahib_ul: Basic here means the basic component of your salary structure right? If that is so, then no.
From India, Mumbai
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92From India, Mumbai
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Yes, if a monthly salary is 25,000/- and you have joined in the middle of the month (even a day less than a month or worked days with acceptable leave, etc.), the net salary is certainly less than your basic. However, the situation could change if you have served for a whole month; the net salary will not be less than this, provided you have taken a loan, LOP, etc. Anyway, you have a great mind in HR, so be careful.
From India, Arcot
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From India, Arcot
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Deductions from salary cannot exceed 50% of the gross amount (or 75% if the deduction includes payments to an employee cooperative). If your basic salary is more than 50% of the gross salary and the deduction is at its maximum, your take-home pay can fall below the basic amount.
From India, Mumbai
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From India, Mumbai
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Are you a beginner or a senior? A wild guess, supposing you were absent for a long period, naturally, your earnings will be meager. At the same time, you will have other deductions such as official quarters or leased accommodation provided by the company, HR-related deductions, court attachments, other recoveries (all fixed amounts), if any, etc. These aggregated deductions may exceed your fixed basic salary, resulting in your net take-home pay being reduced.
From India, Bangalore
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From India, Bangalore
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Dear Can u provide me your gross Salary so that we can give correct The possible is IT deduction, PF/ESI/WC or any other statutory deduction Can happen
From India, Hyderabad
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From India, Hyderabad
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A rigid reduction of salary by $8500 cannot result in a decrease of take-home salary by $500, even considering the new PF rules. The impact of PF increase is limited to ₹1020 (or ₹1800 if you were earlier not covered by PF).
You do not need any law or rule in the act to say this is not possible. You got a salary slip, I hope. Check the comparison of components. What appears to have been done is to restructure the salary components to avoid PF. Then this is something for which the company can get into severe trouble.
From India, Mumbai
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You do not need any law or rule in the act to say this is not possible. You got a salary slip, I hope. Check the comparison of components. What appears to have been done is to restructure the salary components to avoid PF. Then this is something for which the company can get into severe trouble.
From India, Mumbai
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can you give the details of the salary breakup for comparison i.e. the previous one and the current one to the forum so as to give you appropriate view.
From India, Ahmadabad
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From India, Ahmadabad
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Saswata da,
Rectify me if I am wrong... Net salary can be lower than take-home salary. I am saying this from my practical experience as a management professional, competent in laws, accounting, and financial audits.
For example, if someone has asked management to deduct more in the PF account contribution, then funds MAY BE transferred from basic into the PF account, thus making the net salary lower than the basic.
Again, suppose there is some item of salary for which management has done TAX DEDUCTION at the source, then the net salary may become lower than the gross.
Many loopholes are there. I think we should advise the guy to provide the details of the PAY SLIP so that we can give a concrete reply. Alternatively, we can advise the guy to meet a Chartered Accountant or Company Secretary in practice, provide him with details of his salary for a minimum of 1 year, and then request him to provide a certificate of his analysis. Thus, if there is any mistake, the CA/CS can detect and point it out, and the certificate must be ratified by the membership number of CA/CS with ICAI/ICSI and signature.
An experienced auditor knows what to write in such a certificate. I hope you understood.
And I am pretty sure HR can't challenge a qualified auditor without a valid reason(s). Thus, either explain the payslip to the employee or accept the ratified certificate of a qualified CA. A Gentleman's solution.
Thanks and Regards,
Sovik B
From India, Mumbai
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Rectify me if I am wrong... Net salary can be lower than take-home salary. I am saying this from my practical experience as a management professional, competent in laws, accounting, and financial audits.
For example, if someone has asked management to deduct more in the PF account contribution, then funds MAY BE transferred from basic into the PF account, thus making the net salary lower than the basic.
Again, suppose there is some item of salary for which management has done TAX DEDUCTION at the source, then the net salary may become lower than the gross.
Many loopholes are there. I think we should advise the guy to provide the details of the PAY SLIP so that we can give a concrete reply. Alternatively, we can advise the guy to meet a Chartered Accountant or Company Secretary in practice, provide him with details of his salary for a minimum of 1 year, and then request him to provide a certificate of his analysis. Thus, if there is any mistake, the CA/CS can detect and point it out, and the certificate must be ratified by the membership number of CA/CS with ICAI/ICSI and signature.
An experienced auditor knows what to write in such a certificate. I hope you understood.
And I am pretty sure HR can't challenge a qualified auditor without a valid reason(s). Thus, either explain the payslip to the employee or accept the ratified certificate of a qualified CA. A Gentleman's solution.
Thanks and Regards,
Sovik B
From India, Mumbai
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