Salary Verification Confusion: Is Pension Contribution Part of the Last Drawn Salary?

We are conducting interviews for the position of Accountant. During the interview, we inquire about the candidate's last drawn salary. The candidate stated it was Rs. 25,000 per month. Subsequently, we finalized and set the salary at Rs. 30,000 per month.

During this process, we requested proof of salary. The candidate provided the following breakdown for the salary proof:

Monthly salary: Rs. 20,538
Employee share: Rs. 1,755
Employer share: Rs. 537
Total: Rs. 22,838

The candidate also mentioned a pension contribution of Rs. 1,218, bringing the total monthly salary to Rs. 24,048. Based on my understanding, I mentioned that the last drawn salary was Rs. 22,838. However, the candidate argued that the pension contribution is already included in their salary account, making their last drawn salary Rs. 24,048.

I kindly request clarification on this matter.

Thanks & Regards,
S. GOPINATH

Hi Gopinath,

To avoid all these discrepancies, always go for a hard copy proof. You should have asked him for his payslips before you roll out the offer. You can also ask for bank statements, which many companies have stopped though.

Respected Mahr,

Yes, we have verified all hard copies. The details are as follows:

1. Bank statement: Credited salary - Rs. 20,538
2. EPFO statement:
- Employee share: Rs. 1,755
- Employer share: Rs. 537
- Pension contribution: Rs. 1,218

Please clarify if my calculations are correct or not.

Thanks & Regards,

S. GOPINATH
M.Sc (Stat), PG PM IR & LW, PGDCA, DMM

Dear Mahr,

Yes, we have verified all hard copies. The details are as follows:

1. Bank statement credited salary - Rs. 20,538
2. EPFO statement -
Employee share: Rs. 1755
Employer share: Rs. 537
Pension contribution: Rs. 1218

Please confirm if my calculations are correct.

Thanks & Regards,
S. Gopinath
M.Sc (Stat), PG PM IR & LW, PGDCA, DMM