Can Employers Legally Deduct PF and ESI Contributions from Your Fixed Salary?

gautam742
Can a company recover PF and ESI employer contributions from the fixed salary of an employee?

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Hello,

In response to your query, yes, it is possible for a company to recover the employer's contributions towards PF (Provident Fund) and ESI (Employee State Insurance) from the fixed salary of an employee. However, it's important to ensure that such deductions comply with the applicable laws and regulations governing these contributions.

Employers should clearly communicate any deductions made from employees' salaries and ensure transparency in the process. It is advisable to consult with legal and financial experts to ensure that the deductions are carried out in accordance with the law and do not violate any employment agreements or regulations.

If you have any further questions or need clarification on this matter, please feel free to ask.

Thank you.
T.Thirumurugan
Dear Gautam,

If the salary is fixed as a CTC, the employer can deduct PF and ESI contributions of the employer from the employee's salary along with the PF and ESI contributions of the employee.

Regards,
Thirumurugan
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