Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Nagarkar Vinayak L
Hr-consultant
Srinath Sai Ram
Hr Manager
Dkachare
Information Technologies

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Dear Team,
as per the recent esic act i am applicable to esic as my payment is below 21000 and which is applicable from jan 2017. but i am having issue that my employer deducting their 4.75% contribution as well from my salary and which is affecting my take home salary. i just want to know is it as per the policy or employer should increase the CTC.
also esic contribution is not shown in CTC at the time of salary revision (May 2016)
please help.
Thanks in advance
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They cannot do that. Contact your area ESIC enforcement officer. You can also lodge a preliminary complaint here :: Grievance Redress Mechanism in Government ::. Then write a complaint letter to ESIC department. Then contact area labour inspector under Payment of Wages Act.

Basis of opinion : Under the act

"Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise:

PROVIDED that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee's contribution for the period.

Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from him.

Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.

The principal employer shall bear the expenses of remitting the contributions to the Corporation "

read this Employees State Insurance or ESI Act, Rules, Forms, Returns : Simplified: ESI Contribution Rates, Rules, Procedure, Penalty and Related Matters
This is blatant violation of the provisions of the ESI Act.But before invoking authorities under the law, take up with the proper authority in the company, bringing to their attention the illegal act and asking them to refund the amount wrongly deducted. If they still persist, contact the Inspector as advised above by another colleague.
Regards
V.L.Nagarkar
HR-CONSULTANT
Employee Share of ESI Contn @1.75% on Gross Salary Earned only has to be deducted.The Employer should Contribute his share @4.75% on Gross Salary Earned. Coverage Limit is Rs21,000/-PM
1. Sir, so far as I understand, the term "CTC" is not "wages" as defined under ESI Act, 1948. If an employer deducts employers' share of contribution from the "wages" of employee, only then action can be taken against said employer.
2. For more clarity, hope, you will go through the definition of "wages" as laid down under said Act.
You are probably looking the wrong way at this
What is the amount of deduction shown in your pay slip ?
Ctc is a meaningless concept. What the employer puts in ctc does not matter in law
Ctc is only a top to fool, you into thinking you are getting more.
Is there any reduction in your gross salary as shown in your pay slip before and after the start of esic deductions ?
actually we are working on third party roll and as per you suggested i told to HR and they told that we are working with Client and it depend on client approval. once client give us we will provide to you otherwise we cannot refund the deducted amount.

i am now confused that why the are now shifting it on client as we are employees of this organisation and they should contribute their contribution without deducting it from our salary.

one more thing that the sent one mail on Nov 2016 about change in minimum wages act and basic is changed from 8700 to 9000.

also bonus is now(Nov 2016) increased after my lots of reminders from 292 to 750. there is no dues provided of bonus and they are saying that we raised one case in high court about the bonus dues and we will give you once it result come.

we are coming under shop and commercial establishment act. and we are getting 9000 basic from Dec 2017.

please suggest. employer misguiding us every time as we are not having much knowledge about it and applying any rule any time.
we are coming under shop and commercial establishment act. and we are getting 9000 basic from Dec 2016 wrongly typed Dec 2017 in above comment.
You are probably looking the wrong way at this
What is the amount of deduction shown in your pay slip ? --Answer --- there is no amount showing about employer contribution in pay slip as well as in my salary revision letter. my CCA allownace is deducted from my salary. there is drastic change in my allowanaces(CCA).
Ctc is a meaningless concept. What the employer puts in ctc does not matter in law
Ctc is only a top to fool, you into thinking you are getting more.
Is there any reduction in your gross salary as shown in your pay slip before and after the start of esic deductions ? Answer --before act i am getting salary as per the salary revision letter and i dont have issues but after act applied in Jan 2017 they reduced 835 rs- from my salary and gross is showing less 835rs than Dec 2016 salary.
Please furnish Details of Gross Salary Earned, Deductions & Net Salary paid for Decemeber-2016 & January-2017
Who is paying you Salary-principal Employer or Contractor, Who has recruited you?
Minimum Wages is not Changed, but increased from Rs8,700 to Rs9,000/--I hope you have no issue with this
Bonus Amendment with retrospective effect for 2014-15 is before the Court.
You have been paid Annual Bonus Monthly on Basic Salary of Rd9,000/- @ 8.33% which comes to Rs750/-
Please revert with correct information
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