Confused About My Salary Increment: How Did Removing ESI Affect My Raise?

Hi, this is Vijay. I am working in a private company. I have some doubts about my increment this year. I got a salary of 23k per month, but there were some deductions for ESI. I asked my HR managers, and they revised my letter, removing the ESI amount from my package.

Now, here is where the problem starts. My company gave a 15% increment to all employees. With that benefit, I was supposed to receive 3.35 lakhs per annum, including the ESI amount. However, now that the ESI amount has been eliminated from my package, my package is reduced to 3.21 lakhs. Consequently, I only received a 10% increment. I am confused about where that 4% benefit went.

ESI is applicable if your gross salary is Rs 21,000 and below. Employee share of ESI is at 1.75%, and employer share of ESI is at 4.75%.

Thank you.

You cannot claim the employer's share of ESIC contribution to be added to your salary. You have to provide the entire details of your work to have a clear idea; otherwise, it will be very difficult for forum members to give an appropriate view.