Hi,
Im working in one pvt concern, this reg the doubt of ESI . My gross salary is Rs10,604 and CTC is Rs 11326. Due to raise in ESI celling of 10000 to 15000, my Management is planning to adjust both the contribution of ESI from my CTC (CTC remains same) and Gross & take home is reduced . Is it correct proceedure. kindly advice
Regards,
Rabina
From India, Madras
Im working in one pvt concern, this reg the doubt of ESI . My gross salary is Rs10,604 and CTC is Rs 11326. Due to raise in ESI celling of 10000 to 15000, my Management is planning to adjust both the contribution of ESI from my CTC (CTC remains same) and Gross & take home is reduced . Is it correct proceedure. kindly advice
Regards,
Rabina
From India, Madras
Dear Rabi, An employer cannot deduct the same from your salary. The employers contribution is 4.75%.
From India, Mumbai
2From India, Mumbai
Its not correct procedure. Employees' share of ESI contribution cannot be included in CTC.
From India, Hyderabad
From India, Hyderabad
It is definetly not correct on the part of the management to deduct both the contribution from you. They can only deduct 1,75% from you. Balance 4,75% the employer will have to pay. Dont agree to it as the amount deducted will not be of any use to you.
From India, Madras
From India, Madras
Hy Dear... Please Argument with your managament.....that they are doing wrong.... otherwise resign the job...
From India, Surat
From India, Surat
As per ESI rules and regulations, the company will deduct 1.75% from the gross salary of the employee. Here gross salary excludes your conveyance allowance. The company from its own will contribute 4.75% of your gross salary, but it will not be deducted from your gross salary nor CTC. So from your gross salary the company will only deduct 1.75% and nothing else.
Saugata De
From India, Calcutta
Saugata De
From India, Calcutta
Dear, It is a wrong procedure company has to deduct 1.75% from your gross and employers contribution is 4.75% . they are following wrong procedure. Please argu with the company.
From India, Hyderabad
From India, Hyderabad
Hi,
I have a different view on this. It depends on what are the terms of employement.
In case the company has given you an appointment letter which mentions grosss salary - then it can not deduct company contribution of ESI. Your Net salary will go down to the extent of employees contribution of ESI (1.75%).
However, if the company has mentioned CTC in your appointment letter, then it's their perogative to deduct Employers contribtion of ESI from CTC.
There is difference between CTC and Gross. CTC= GROSS + Employer contribtion of PF, Employers contribution to ESI, Gratuity provision and other benefits which the employer extends. (if you search some other discussion on this topic, you'd get more details) - It is common practice to offer CTC to employees and not Gross (though I personally do not support it!)
Archana
From India, Mumbai
I have a different view on this. It depends on what are the terms of employement.
In case the company has given you an appointment letter which mentions grosss salary - then it can not deduct company contribution of ESI. Your Net salary will go down to the extent of employees contribution of ESI (1.75%).
However, if the company has mentioned CTC in your appointment letter, then it's their perogative to deduct Employers contribtion of ESI from CTC.
There is difference between CTC and Gross. CTC= GROSS + Employer contribtion of PF, Employers contribution to ESI, Gratuity provision and other benefits which the employer extends. (if you search some other discussion on this topic, you'd get more details) - It is common practice to offer CTC to employees and not Gross (though I personally do not support it!)
Archana
From India, Mumbai
hi all,
Agreed that the employer cannot deduct more than 1.75% from an employees gross pay or else the impact is straight on the take home pay.
However, if the employer issues a revised structure and is not in a position to raise its annual budget, then what do you all say.
The government will not bring out laws as per the convenience of all. There has to be some adjustment.
For example, a new amendment has come out in the Gratuity Act, now the ceiling has been revised to Rs,1000000/- instead of Rs3,50,000/-. So an employee who retires a day earlier or so receives 3.5lacs and a coworker retires a week later suppose, he receives Rs.10lacs, wats your say in this.
Who do you blame, the government or the employer. Resigning from a job is easy, but can you guarantee that your new employer will not do the same. Will you hop from one job to the another.
What do you all have to say now?
Regards,
pinky
From India, Ahmadabad
Agreed that the employer cannot deduct more than 1.75% from an employees gross pay or else the impact is straight on the take home pay.
However, if the employer issues a revised structure and is not in a position to raise its annual budget, then what do you all say.
The government will not bring out laws as per the convenience of all. There has to be some adjustment.
For example, a new amendment has come out in the Gratuity Act, now the ceiling has been revised to Rs,1000000/- instead of Rs3,50,000/-. So an employee who retires a day earlier or so receives 3.5lacs and a coworker retires a week later suppose, he receives Rs.10lacs, wats your say in this.
Who do you blame, the government or the employer. Resigning from a job is easy, but can you guarantee that your new employer will not do the same. Will you hop from one job to the another.
What do you all have to say now?
Regards,
pinky
From India, Ahmadabad
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PF,ESI WORKING SPECIMEN.xls