Is My Company Wrongfully Deducting ESIC? Urgent Help Needed on Legal Steps

Hi all, there is a company in Bangalore that I cannot name at this stage, which post-May 2010 is deducting the full 6.5% ESIC contribution from the employee, saying they can't afford to pay the 4.75% contribution.

Employee Action and Complaint Process

What action can the employee take and where can he complain? Please see if my example is correct: Salary for the month, including all allowances, is Rs. 12,927. The deduction done by the company this month for ESIC is Rs. 840.25, but according to me, it should only be Rs. 226.25.

Please let me know URGENTLY if I am right and what legal action can be taken.

Thanks,
Amyt

If any company is deducting ESIC contribution at 6.5% per month from an employee's salary, which is illegal, I suggest that the employee should have his/her current salary slip stating that ESI contribution has been deducted as mentioned above. The employee can then go to the ESIC Regional Office to meet the Regional Director with a written application to resolve the issue.

I am confident that the Regional Director will assist and resolve the matter positively.

Thanks and regards,
Amit Tyagi

ESI eligibility is only up to Rs. 10,000 salary, not for salary holders exceeding Rs. 10,000. For them, a mediclaim policy exists.

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I have corrected the spelling and grammar errors in your input and adjusted the paragraph formatting for better readability.

Dear Amyt,

As suggested by Mr. Tyagi, no company can deduct a total of 6.5% from the employees' salary. Their share of contribution is 4.75%. Please get in touch with your regional ESIC office for the same. You can take your salary slip along as proof.

Regards,
Shveta Sharma

Dear,

In this condition, the employer will not show that it is deducted from the employee's salary, so it cannot be mentioned in the salary slip. Whatever salary you have mentioned might be CTC.

Dear Amyt,

Firstly, I agree with Mr. Tyagi. However, you should have already confirmed at the time of the interview about that. They will always talk about CTC, and CTC means "Cost to Company," including the employee and employer parts.

Regards,

Madan Mohan Verma
madan.hrd@gmail.com

Can the company change the salary arbitrarily from the current month, that is, reduce the basic and cut exactly 4.75% of gross? Also, show 1.75% as Employee's deduction on the payslip.

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Thank you!