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prabhu0393
Sir,
Due to new rule of esi increased to 21000, my employer revised my salary structure without increasing my CTC to employer esi contribution part. Due to this my salary is reduced by both employee & employer contributions from my side.
Please confirm is government strictly told to employers to increase CTC for their contribution part or employer can adjust from salary structure without increase ctc for their benefit.
Regards,
Prabhu H

From India, Namakkal
riteshmaity
243

If your current salary is reduced due to implementation of ESI then I do not think there is anything wrong in it. But for better clarity you may share your last salary with current salary structure.
From India, Kolkata
prabhu0393
My current fixed salary is 250000 per annum. My qs is my employer instead of raising the ESI (Employer contribution) in my ctc , they adjusted the same in my old ctc itself.
So now my Take home salary reduced nearly 1100rs. (employee & employer contribution both deducted from my side)

From India, Namakkal
raajesharya
22

If you were already registered under the ESI Act and participated in it, then you can not do anything about change in your salary structure. But, if your employer opted to modify your salary structure to escape provisions of the Act, then it is illegal because their act is detrimental to your as well as national interest.
From India, New Delhi
Anonymous
Attached my Salary structure below. Is employer have right to adjust the salary structure without increasing CTC for ESI emplpyer contribution ?
From India, Namakkal
Attached Files (Download Requires Membership)
File Type: jpg IMG_20170226_110210.jpg (1.30 MB, 95 views)
File Type: jpg IMG_20170226_110100.JPG (935.0 KB, 70 views)

raajesharya
22

The employer can change the salary structure institutionally without an intent to escape his statutory liability. If the employer picks and chooses a few, that might be wrong! If the intent is ill, then a legal remedy can always be look into.
But, be careful that in a latter case, your employment will always be at the mercy of your employer, regardless of how best you perform.

From India, New Delhi
raajesharya
22

In your case, the gross salary limit is covered under ESI Act. The change in your take home salary is triggered by provision of Act, so employer is not obligated to compensate you for the virtual loss. Better, speak with your employer and request him with some legitimate grounds.
From India, New Delhi
Bharat Gera
223

The employer can not deduct his contribution from the salary of employee. The employer is under obligation to make ESI contribution of his share from his kitty.
In your case the move of employer is illegal and unjustified as it has resulted in reduction of your salary.
Your salary can be reduced to the tune of your own ESI contribution only.
The CTC concept is a commercial concept, it is not a concept recognized under various labour laws.
You can challenge this move before appropriate authority, if you wish.

From India, Thane
Apex Management
157

Dear all,
While going through the attachments, it is observed that the employer has changed / revised the salary structure from Rs.19149 to Rs.18171/-. No doubt, basic is increased from Rs.12766 to Rs.13281 but the gross earnings are reduced by Rs.978/- which is illegal and unjustified.
P K Sharma

From India, Delhi
prabhu0393
Thanks for dharing your views, but is their is any law stating that Employer should not change salary structure to avoid ESI of their contribution by transferring the burden to employees?
From India, Namakkal
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