Central Govt PSU Salary Discrepancy: How Can Employees Address Unpaid CTC Promises?

Central Government PSU Salary Discrepancy

A central Govt PSU (Public Sector Unit) advertised a certain CTC in the advertisement (Approx. Rs 5 lakhs per annum). In the appointment order, the same components of the salary, like performance-related pay, project-linked allowance, etc., are mentioned (without specifying the rupees), followed by the phrase "will be admissible as per rules." Only the Basic pay is mentioned in rupees.

After joining, the company does not pay many components of the salary promised in the advertisement and appointment order. As a result, the take-home salary is only half of the CTC promised in the advertisement.

When some employees raised the issue, they were transferred to remote places, harassed, and even dismissed. Some employees filed court cases, and the company responded:

1. CTC was approximate.
2. Some allowances were announced, but the final implementation did not happen.
3. It is mentioned in the appointment order "as per rules." So, all payments will happen only as per rules.
4. There was no specific promise to pay this much in the appointment order.
5. You accepted and joined.
6. You will be paid a salary that others are getting.

Questions for Consideration

A. Is the company justified in falsely advertising a high CTC to lure employees?
B. What is the remedy for the employees who were cheated?
C. Will it be worthwhile to fight it in court?
D. What are the options available for the employees (other than leaving)?
E. To whom should a complaint be made?

Understanding CTC vs. Salary in Hand

People should not mistake CTC (Cost to Company) for the salary in hand. An advertisement might state that the CTC is RsX, but what are the components of this CTC? Some components, like deductions for gratuity, do not affect the take-home pay of the employee. Additionally, some allowances mentioned as part of the CTC may not be payable to all employees or may depend on certain conditions.

Of course, it is not good for any employer to give false hopes by showing a higher CTC; they should be truthful about what they are going to pay. A company will obviously take all legal defenses, but a good employer considers the moral aspect as well. You can probably join hands with other employees and write to the controlling Ministry of the PSU, highlighting harassment and misleading CTC, and ask them to rectify these wrongdoings.

A legal battle is a time-consuming event, and one should think about whether they should move on or contest legally and await justice.

Regards