Confused About Salary Breakdown and Benefits: How Should I Negotiate My In-Hand Pay?

Dear All,

As I joined a new company, during my final round of interviews, I asked for ₹15,000 in hand (net pay). The director thought it was a CTC per month and was ready to give me ₹1.8L yearly. Since I am covered under a medical policy provided by my husband's company, I am receiving all medical benefits through that. Therefore, I am not interested in taking ESIC from my current company. I communicated this to the director, and he offered me a ₹100 hike so that I would exceed the ESIC limit, as he was unaware that ESIC calculation is based on the consolidated salary. I also mentioned that I do not want PF and gratuity from the company, which I had already informed the director about, and he had agreed. Consequently, I submitted the form to opt-out of ESIC and PF.

Now, the director has consulted with a consultant and put my offer on hold. In the first month, as my joining date was the 21st of April, I received a salary for 10 days with PT deductions, totaling around ₹4,800/-.

Consolidated Salary Working:

- Basic = ₹9,060
- HRA = ₹3,020
- CCA = ₹755
- Conveyance Allowance = ₹755
- Medical Allowance = ₹1,510
- Consolidated Salary = ₹15,100

Deductions:
- Employee's contribution to PF = ₹0
- Employee's contribution to ESIC = ₹0
- Professional Tax = ₹200
- Total Deductions = ₹200
- Net Pay = ₹14,900

Other Benefits:
- Company's contribution to PF = ₹0
- Company's contribution to ESIC = ₹0
- Bonus = ₹755
- Gratuity = ₹375
- Total Benefits = CTC = ₹16,233
- PF Contribution from Employer = ₹1,080
- ESIC Contribution from Employer = ₹713
- Total = ₹1,793

If I choose not to take Gratuity = ₹375, it will be added to my salary. If I receive a bonus of ₹750, with the bonus total = ₹2,918 from the employer. If the company does not give me a bonus, the total contribution from the employer is ₹2,543. By not taking PF, gratuity, bonus, and ESIC, I am saving the employer ₹2,543 per month. How much in-hand salary should I request to be paid?

Regards,

Dear Aarti,
This is exactly the same case with me also. I m also drawing Rs. 15 K pm and don't want to take ESIC. Please give us the solution for this problem.
regards,
Deepali Dutt

Every company has its own salary structure and fitment. If you don't want to avail ESIC benefits, the employer has given you a Rs. 100 hike, putting you out of the ESIC limit, and the same case may apply to PF. However, Gratuity and Bonus are statutory, and the employer is obligated to make provisions for them. There is no question of saving the employer's money.

I suggest you join as a consultant and accept a consolidated salary of Rs. 15,000 per month.

Regards,
Rajesh

Thank you, Mr. Rajesh. My director called me again yesterday for the salary discussion. He is ready to offer me a consolidated salary of 15,050. After PT deduction, it becomes 14,850 (net pay), and gross after adding Gratuity and bonus, it becomes 16,180.

Previously, he appointed me as HR Manager. Now, he gave me an appointment letter in which he wrote Asst. HR Mgr. He might be aware that I will inquire about this. Today, the general manager and director are absent from work as my salary and position were decided after a long discussion. I noticed they are pressuring me to accept the offered salary and appointment letter. Should I accept the letter or not?

Hi Arti, Every company has its salary structure and fitment. If you do not want to avail ESIC benefits, the employer has given you a Rs. 100 hike, and you are out of the ESIC limit, and the same case may apply to PF. However, Gratuity and Bonus are statutory, and the employer has an obligation to make provisions for Gratuity and Bonus. There is no question of saving employers' money.

I suggest you join as a consultant and accept a consolidated salary of Rs. 15,000 per month.

Regards,
Rajesh