Salary Deduction Confusion: Will My Company Deduct from Gross or Exclude Bonus?

I have served a notice period of 18 days, and the company will deduct for 42 days. My Cost to Company (CTC) includes Basic, HRA, Company Allowances, Advance Statutory Bonus, PF, and Gratuity.

Question on Salary Deduction

Since the company pays me based on CTC, which means gross salary, will they deduct the same amount based on gross salary, or will the advance statutory bonus be excluded? I believe the advance statutory bonus is a bonus that employees receive when they work in a company. If they haven't worked for that period, they are not entitled to the amount, and the company cannot deduct the same amount from the employee.

Please advise on what should be done in this case regarding my Full and Final payment.

Your query is a little perplexing. Having said that, I mean to draw your attention to your statement, "company pays me as per CTC, which means gross salary." CTC and gross salary are very different in nature. Also, do you mean to say that the bonus forms part of your gross salary and is paid out monthly? If yes, then it will surely be adjusted against 42 days' pay as well. The company reserves the right to adjust all the components of gross salary against the unfulfilled notice period.

Sorry, I meant "Gross Salary." Yes, it's part of the gross salary and paid every month. Let's take an example:

Basic: 8000
HRA: 4000
Allowances: 2000
Adv. statutory bonus: 500
Gross Salary = 14500

Do companies recover 14500 X 42 / 30 = 20300, since I haven't worked for 42 days?

Continuing with the same example, if I worked for 10 days, the company pays me = 14500 X 10 / 30 = 4833, including the bonus because I worked for 10 days.

If the company has norms for a 1-month notice period, they will charge for 20 days = 14500 X 20 / 30 = 9667. Since I didn't work for 20 days, can the company take back the Adv. Stat. Bonus since this is extra pay the company gives to an employee?

It's just a matter of the company showing the bonus monthly to save tax, I think.

Please check this attachment and tell me if they have charged correctly or not.

Full and Final Recovery Amount

The recovery amount is derived from the Master Salary, but I think the Advance Statutory Bonus should not be included in the recovery of the notice period shortage. Let me know your views.

Dear Sourabh.agarwal1, the sheet enclosed by you doesn't really provide clarity. The earnings mentioned by you are not for 18 days. Also, how come the transport allowance, not mentioned in the master salary, appears to be a component of earnings? The PF contribution is also not equal to 12% of the basic earned. Can you instead enclose the exact full and final settlement statement?

Regarding your query about the bonus, if paid monthly, it is recovered against notice pay.

Thanks, Hiral, for your reply. Sorry for the confusion regarding the salary for 14 days. The transport allowances are not fixed; they are variable and paid based on the number of trips taken.

Provident Fund Calculation

As for PF (Provident Fund), the calculation is as follows: Basic 2498 * PF 12% = Rs. 300.

Clarification on Bonus Recovery

Now, concerning the Bonus, could you please clarify if there is any specific article or law that states it must be recovered by the company? If you have this information, please let me know.