ESIC Deduction And Contribution - CiteHR
Bijay_majumdar
Freelancer In Hr &indirect Taxes For
Soumik1570
Calcutta University
Srishreesree
Sr Generalist - Hr
+4 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
I have a monthly salary of 12000 and in my payslip there are two deductions one is labelled as ESIC contribution and that is of Rs. 544 and one is esic deduction and it is of Rs. 201 .I consider that as an employee i am entitled to pay only 1.75 % of my salary i.e , Rs. 210 and nothing else to ESIC ,i also think that 4.75 % is to be paid by my employer and not me and also that they are taking their part of share from me .Please guide me in this regard and tell me if i am wrong on my behalf.
Hello!!
It would be easy for others to understand the same if you can attach your salary slip & annexure of appointment mentioning CTC offered to you.
Your understanding about the contribution is correct i.e. 1.75% is employee contribution & 4.75% is employer contribution & ONLY employee contribution is deducted from Gross Salary in Salary Slip but if your company is deducting 4.75% too then there has to be something attached to it.
Again, the figures you've mentioned do not collide with the actual amount if your gross happens to be 12k. Good if you can enclose the copy of payslip.

Hi Shiva,
You are right. As per ESIC, Employee contribution is 1.75% of basic which will be deducted from your CTC. and employer contribution is 4.75% which should not be deducted from your CTC.
Thanks & Regards,
Srilakshmi Korukonda

Hi Shiva,
You are right. As per ESIC, Employee contribution is 1.75% of gross which will be deducted from your CTC. and employer contribution is 4.75% which should not be deducted from your CTC. It should be paid separately by the employer.
Thanks & Regards,
Srilakshmi Korukonda

Hi Shiva,
It seems that there is something wrong with the bifercation and contributions stated by you .You are right that esic is 1.75% but kindly checkout with your hr dept for more clarification and also go thru your offer /appointment letter properly.
Hope your querry will be resolved at your hr dept itself.
Thanks.
Bijay

Is it the CTC which is offered to monthly? i think its ctc structure, where employer shows the total cost of the employee to the company, so often we see PF n ESI contribution from both sides in one pay structure. There's nothing faulty in that. But if its gross salary, then u must talk to your HR dept., because from your gross salary only employee contribution should be deducted not employers ....
You are right. As per ESIC, Employee contribution is 1.75% which will be deducted from your Gross. and employer contribution is 4.75% which should not be deducted from your salary,which has to be contributed from Employer end.
IT IS DEPAND ON YOUR CTC STRACTURE. ASK YOUR EMPLOYER TO PAY YOU THE AMOUNT FIXED AS TAKE HOME SALARY AT THE TIME OF APPOINTMENT.
1.75 % is employee contribution deductible from gross salary & 4.75% is the employer contribution. Although this 4.75% is not deductible from the salary of the employee but definitely it contributes to "COST TO COMPANY". As such this needs to be properly understood in terms of the offer of appointment.
Rs. 12000/- is cost to company (CTC) and your Gross Salary is Rs. 11456/- wherein Employers contritbution of Rs. 544/- is added as CTC part and your deduction is Rs. 201 is employees contribution.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™