Is It Normal to Get a Salary Without Deductions? Seeking Advice on ESI and PF

My query is, is it possible to receive a salary from the employer with zero or nil deductions? I am currently employed in a small firm with 5 employees. I receive 18,000 per month in hand, and I have not allowed my employer to deduct ESI or PF from my salary.

Is this a common or acceptable practice? Please advise.

If your firm is registered with PF, then it's better to avail of PF contribution. Anyhow, ESI is not applicable to you. I hope even PT deduction is mandatory for your salary.

Regards,

Dear Jeevarathnam, My firm is not yet registered for PF, and I don't want it to be deducted from my salary. Will this create a bad impact on my future employer?

PT Deduction

Secondly, please tell me about PT deduction.

Regards.

Your gross salary is more than $15,000, so ESI is not applicable in your case. In the case of PF, your company is not legally bound to deduct PF. So it's absolutely fine to have your salary all in cash in hand.

Thanks,
Yogital

You are liable for PT deduction of Rs. 2500 per annum as your salary is above Rs. 10,000. The PT slabs are as follows:

- Below Rs. 5000 - Nil
- Rs. 5000 - Rs. 10,000 - Rs. 175 per month
- Above Rs. 10,000 - Rs. 200 for all months and Rs. 300 in the month of March

I hope this clears your doubts.

Thank you.

Hi Yogita, PT is Professional Tax, which is deducted from our Gross Salary according to the slabs I mentioned above.

Thank you.