Confused About Salary Discrepancy: Is My Employer Manipulating Compliance Figures?

Dear All,

I am joining a company in the Punjab area from February 2019. Until now, I have received two salary payments amounting to Rs. 15,000/-, but I have not yet received an appointment letter (including salary structure) from the employer, as the offer letter was provided at the time of the interview.

During the interview, the employer agreed to pay Rs. 15,000/- as in-hand salary plus compliance (PF, ESI, LWF, etc.). However, upon the employer depositing my PF and ESI in the following month, I discovered that my salary on the compliance sheet is Rs. 6,750/- Gross and Rs. 10,788/- Net Salary as shown below:

Basic Gross Days Earned PF ESI LWF T. Dedu Gross Wshng Allow Bonus Leave Gratuity Net Pay
6750 6750 31.0 6,750 810 118 5 933 5817 3500 562 584 325 10788

Concern About Salary Discrepancy

My concern is that even though I am working in the Punjab area, the basic salary mentioned is Rs. 6,750/-, which is the minimum wage in Himachal.

Question About Compliance Figures

Secondly, my in-hand salary is Rs. 15,000/-, so how did the employer prepare a salary sheet with different figures for compliance purposes? Is it possible that the employer is manipulating the salary to show a lower amount for statutory requirements?

I would appreciate your advice on what steps I can take in this situation.

It appears there are several concerns regarding your employment and salary structure. Here are the key issues and steps you can consider:

1. Minimum Wage Compliance

- Geographical Discrepancy: You mentioned working in Punjab but being paid the minimum wage of Himachal Pradesh (Rs. 6,750 for Basic). Each state in India has its own minimum wage rates, and it's essential that your employer complies with the minimum wage laws of Punjab since that is where you are employed.

- Potential Violation: Paying less than the prescribed minimum wage for Punjab could potentially violate labor laws. It's important to verify the minimum wage rates applicable in Punjab for your category of employment (skilled, semi-skilled, unskilled) and ensure your employer adheres to these rates.

2. Salary Structure and Compliance

- Discrepancy in Salary Structure: Your in-hand salary is Rs. 15,000, but the compliance sheet shows a basic salary of Rs. 6,750 with additional components. This suggests a discrepancy between what you are actually earning and what is reported for compliance purposes.

- Statutory Deductions: The compliance sheet indicates deductions for PF, ESI, and LWF based on the reported salary structure. It's crucial that these deductions are calculated correctly based on your actual earnings.

3. Steps to Take

- Request for Appointment Letter: Firstly, request your employer to provide you with an appointment letter that clearly outlines your salary structure, including basic salary, allowances, deductions, and other benefits. This document is crucial for understanding your employment terms and for future reference.

- Seek Clarification: Approach your HR or employer to seek clarification on the discrepancy between your actual salary (Rs. 15,000 in-hand) and the reported compliance sheet (Rs. 10,788 net salary). Understand why there is a difference and whether it complies with applicable laws.

- Raise Concerns: If you believe there is deliberate misrepresentation of your salary to reduce statutory costs (like PF, ESI, etc.), raise your concerns with HR or management in a professional manner. Document any communications or discrepancies for future reference.

- Labor Department: If discussions with your employer do not resolve the issue and you suspect violation of minimum wage laws or other labor regulations, consider seeking advice from the labor department of Punjab. They can provide guidance and investigate if necessary.

4. Legal Advice

- Consultation: If the situation escalates or remains unresolved, consider consulting with a labor lawyer who specializes in employment laws. They can provide legal advice and assist in resolving disputes related to wages, compliance, and employment terms.

Conclusion

It's important to ensure that your employment terms and salary comply with applicable laws, especially regarding minimum wages and statutory deductions. Requesting clarity from your employer and seeking advice from relevant authorities or legal experts can help resolve these issues and ensure fair treatment under employment laws.