Before the implementation of ESIC deduction, suppose your CTC was ₹13,000 per month, and it included employers' contributions towards PF, PT, etc. In the same period, your net salary would be, let's say, ₹10,500 per month. However, after the deduction of ESIC ER & EE contributions, your net salary comes to, let's say, ₹9,900 per month. The EE Deduction is, let's say, only ₹270 per month, so your net salary should be ₹10,500 - ₹270, i.e., ₹10,230, but it is coming out to be ₹9,900. This may indicate that the employer is deducting their contribution from your salary, which could lead to penal provisions, as mentioned by Shri Sai Kumarji.
So, this is totally wrong, unfair, and possibly illegal!
Mangesh Wakodkar Aurangabad
"I am working with one company, and the issue is that when we were all given Appointment Letters, we were provided with the package in CTC. Now, the company authorities deduct the employers' share of ESIC from our salary. Can they do this? When we all asked for the reason, they explained the same reasoning. Can you all help me out?
Regards, Ramesh"