PF and ESIC - Management is not ready to bear the Employer contribution so we started deducting both employee and employer contribution

sushmitha Reddy
I am sushmitha Working as a Human Resource for a Startup company. I am the only person in HR department handling from hiring, Payroll, Exit employee, some HR generalist Activities. I would like to request you guys one thing, in my company we started deducting PF and ESIC. Management is not ready to bear the Employer contribution so we started deducting both employee and employer contribution amount in their CTC.
But we didn't mentioned anywhere in their offer stack up.
For that purpose, we thought to prepare salary amendment to all the employees. So can someone help me out I am unaware of it? Please suggest to me what are the columns I have to add we are thinking that we are supposed to add benefits to that amendment
I am finding a bit difficult to find salary amendment. Please suggest me, guys. It would be very grateful to me.
umakanthan53
Dear Sushmitha,
Your entire post creates a negative impression about your organization and as such anyone would be obliged to think that your computation of the CTC and your current attempt to make amends are not due to ignorance of law or error of judgement but only to hide the mistakes wantonly made. Therefore, naturally no one would be inclined to explain the concept of CTC to your management nor the ethical implication involved in luring the employees. Neither your management's unwillingness nor their financial inability would be valid reasons for your failure to remit the employer's contribution under the Laws you mentioned. In addition, such an act would amount to unauthorised deductions leading to recovery proceedings u/s 15 of the Payment of Wages Act,1936 in case of its application or breach of the contract of employment. Better, advise your management accordingly in stead of trying to amend the salary already agreed.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute