My brother works in a company that doesn't deduct EPF or professional tax. I have shared the salary slip in the attachment. I want to know if this is a valid salary slip and if it will be accepted by HR and background verification teams when my brother applies for MNCs in the future. Kindly suggest.
From India, Kolkata
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From India, Kolkata
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It is not mandatory for an employee to be subjected to the deduction of PF. One can be an excluded employee. Similarly, professional tax can be deducted in full in one month, and it is not necessary for it to be deducted every month. However, the salary slip should be a general document of salary, which should be common for all employees. Therefore, there should be available heads for deductions like ESI, EPF, professional tax, TDS, and other deductions. If you are not covered under ESI, the payslip shall show "0" against ESI. Similarly, if the employee is not contributing to EPF, the slip will show "0" against EPF. In the month where there is no deduction for professional tax, there can be "0" against PT as well. A company paying a gross salary of, say Rs 45,000 per month, should at least have TDS. Therefore, even though the non-availability of any deductions is not an issue, a payslip like that attached will fail to convey the genuineness of having received the said amount as salary. Very simply, when you make a payslip, you should apply some basic sense, though not necessarily in alignment with the prescribed form under the Minimum Wages Act, Factories Act, or similar other Acts.
From India, Kannur
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4526From India, Kannur
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Applicability of EPF, ESI, PT, and TDS
The applicability of EPF, ESI, PT, TDS, etc., will depend on the size of the establishment, number of employees, location, gross salary, and other criteria. For a person drawing a gross salary of Rs. 45,000, there may be marginal chances of TDS subject to IT rules. If the total manpower is 20 or more, only EPF is applicable. Similarly, if the employee draws a salary of more than Rs. 15,000, the deduction of PF is not compulsory, except if they are already a contributing member of EPF. Similar criteria apply for ESI & PT, as per the respective acts.
Format of the Payslip
With respect to the format of the payslip, there are a few formats prescribed under the labor laws in respect of Shops & Commercial Establishments, Factories Act, and other entities in India which have to be issued to the respective employees every month in those formats. I don't think there will be any difficulties that MNCs will face in reading the one you have attached. But the question remains whether the format is as prescribed in the act/rules as applicable.
From India, Bangalore
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The applicability of EPF, ESI, PT, TDS, etc., will depend on the size of the establishment, number of employees, location, gross salary, and other criteria. For a person drawing a gross salary of Rs. 45,000, there may be marginal chances of TDS subject to IT rules. If the total manpower is 20 or more, only EPF is applicable. Similarly, if the employee draws a salary of more than Rs. 15,000, the deduction of PF is not compulsory, except if they are already a contributing member of EPF. Similar criteria apply for ESI & PT, as per the respective acts.
Format of the Payslip
With respect to the format of the payslip, there are a few formats prescribed under the labor laws in respect of Shops & Commercial Establishments, Factories Act, and other entities in India which have to be issued to the respective employees every month in those formats. I don't think there will be any difficulties that MNCs will face in reading the one you have attached. But the question remains whether the format is as prescribed in the act/rules as applicable.
From India, Bangalore
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Salary slip final.xls
Salary slip.doc