Is My Company Wrong to Deduct Both Employee and Employer EPF and ESIC Contributions? Seeking Advice

Dear respected members,

My company is a third-party company that provides quality services to other big companies (manpower). I am an employee, and my CTC mentioned in my appointment letter is Rs. 10,739. They pay me Rs. 7,980 in hand. On my salary slip, it shows the Basic salary as Rs. 8,450.

If I calculate 12% of Basic or CTC and 1.75% for ESIC, then my in-hand salary should be more than Rs. 7,980. They are deducting both employees' and employers' contributions of EPF and ESIC from my salary. When asked, they say, "We are a third-party company, so we deduct both from your salary as the contract company doesn't pay you EPF and ESIC."

I request all members to please let me know if they are correct or what can be done in the above scenario. Or are they cheating? Please go through the above post in detail.

Thank you all.

Employer is authorized to include employer PF & ESI contributions in employee CTC. There is nothing illegal in it.

Employer cannot deduct employer's EPF share from your gross salary. However, the employer can include it in CTC, not in the gross part. The same applies to ESIC.

CTC is only suggestive; what it conceals is vital, as the saying goes. CTC does not reflect the salary being received.

I agree with others, an employer can show PF contribution as a benefit in your CTC. It does not mean it should be paid to you only as a monthly salary; it can even be paid to you through PF or ESIC. The benefit is all yours.

Dear Anamika,

Please upload your CTC structure, pay slip, and applicable minimum wages. Please also provide details about your employment, such as designation, nature of job, type of industry, etc.

Vague questions not supported by documents will not suffice unless you are serious about a valid reply.