Unexpected Salary Deductions: How Can I Negotiate with My Employer for Clarity?

Dear Seniors,

I had joined an organization, and at the time of joining, they offered me a certain amount on hand. However, now at the end of the month, HR has informed me about deductions that are compulsory to be taken from the net pay, such as security deposit, food coupons, PT, etc. These deductions were not communicated to me at the time of joining.

Please guide me on how to negotiate with the employer.

If these deductions are legitimate, then nothing can be done.

How much experience do you have, or is this your first job?

Professional tax and income tax will be deducted whether they have informed you in advance or not.

How much is the difference between what you heard from HR and what you are actually getting?

Hello,

First of all, when you join an organization, the company should share the salary structure in advance. If it is not the policy of the company to share it beforehand, clearly ask about the deductions from your salary in writing. Now, coming to your point, most companies deduct PF (Employee), ESI (Employee), LWF, and PT from the net salary of the employee.

Dear Seniors, I joined an organization where, at the time of joining, they offered me a certain amount on hand. However, at the end of the month, HR informed me that these were deductions compulsory to be taken from the net pay, e.g., security deposit, food coupons, PT, etc. None of this was communicated to me at the time of joining.

Negotiating with the Employer

Could you please guide me on how to negotiate with the employer?

Thank you.

Thanks a ton for the reply.

Having 1.3 years of experience, there is a security deposit deduction of Rs. 4000 for every month for 2 years. There is no PF deduction, and around Rs. 6000 is deducted every month. At the time of joining, it was informed that a certain amount 'x' is receivable on hand, and now there is a deduction from that.

What to do... please guide.

Deduction of security deposit in the manner stated is a violation of the Payment of Wages Act. If your salary is less than ₹18,000, then they are not allowed to deduct that money. If your salary is above that, then the Payment of Wages Act does not apply.

Coming to your other points - you need to decide whether the take-home pay is acceptable. If not, find another job and leave. You can inform your new employer that you are leaving because they are not paying what was promised in the appointment letter.

I am not sure there can be any options other than what Saswata Banerjee mentioned. Please learn from this experience—ask and don't depend on HR to explain everything. This is not to support the concerned HR here; some HR professionals may derive sadistic pleasure from such actions or simply try to deceive new employees. You should have asked for the salary breakup, which provides details of all payments and deductions and the categories they fall under.

All the best.

Regards,
TS