Is It Fair to Include Employer's ESI Contribution in the CTC Offer? Seeking Clarity!

Dear HR Family members, I am here requesting you to clarify my doubt: when an employer is going to offer a salary package to a selected candidate, is it correct to mention that the employer's ESI contribution is part of the CTC package?

Regards,
Venki

To be on the better side, it would be advisable to deduct but not show the employer's part of PF & ESI in your salary register or wages register. This is because, as per labor welfare legislation, the PF and ESI contributions from the employer should be deducted from the employee's salary. In the context of CTC, these contributions are inclusive.

Dear HR friends, please tell me which components affect ESI and list the expenses I should deduct for ESI. Please send all ESI forms in Excel format.

Thanks and regards,
Sahanasamu

Thank you for your valuable replies. However, based on my knowledge, we shouldn't include the Employer ESI contribution as part of CTC. There are two methods to consider:

1) While calculating the employee cost to the company, we can include the Employer ESI contribution as part of the cost to the company.

2) When offering a package to a candidate, we cannot include it as part of their offering package.

Please clarify if there is anything incorrect.

Regards,
Raghav

Inclusion of Perks and Benefits in CTC

While displaying CTC to attract a prospective employee, companies generally include a plethora of perks and benefits. However, a line should be drawn. Although an employer's contribution towards PF can be shown in CTC, the administrative cost for PF should not be included in the CTC.

Warm regards.

My company is a newly registered company, and my salary is 13,000. Professional tax is deducted monthly. Next month, ESI and PF deductions will start in my company. How much will be deducted from my salary?

Thank you.