Salary Breakup and Bonus Deduction Inquiry
I have recently joined a company, and they provided me with a salary breakup sheet that mentions "Bonus deduction" from CTC. I am attaching the file for your reference. Can anybody confirm if this deduction is mandatory? Can a company make this kind of deduction without the employee's consent?
Please reply.
Regards,
Amee
From India, Ahmadabad
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1I have recently joined a company, and they provided me with a salary breakup sheet that mentions "Bonus deduction" from CTC. I am attaching the file for your reference. Can anybody confirm if this deduction is mandatory? Can a company make this kind of deduction without the employee's consent?
Please reply.
Regards,
Amee
From India, Ahmadabad
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As far as I can see, there is no deduction for a bonus, but it has been shown as a part of CTC (Cost to Company), and the company can include this in your salary. It doesn't mean that they are deducting anything from your salary; it is just a way to show the packages.
From India, Delhi
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From India, Delhi
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When you joined the company, did you negotiate for a "take-home salary"? If you are receiving what you asked for, then there should not be any problem with what the company shows in the deductions. Secondly, is the salary breakup as per the breakup given in your appointment letter? You need to clarify this as well.
Regards,
DVD
From India, Bangalore
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Regards,
DVD
From India, Bangalore
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Because the bonus is included in the CTC, it might have been omitted from the salary since you will receive the bonus once a year, just like the other employees. Their action is correct.
Regards,
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
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Regards,
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
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I agree with Mr. Gurumurthy. This is part of your CTC, but it will be given to you once a year as a bonus, which means next year along with other employees. They are right.
Regards,
Kamlesh Mehta
Asst. Mgr. Wage & Comp. Benefit
From India, Pune
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Regards,
Kamlesh Mehta
Asst. Mgr. Wage & Comp. Benefit
From India, Pune
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Generally, bonuses and performance-linked bonuses are paid by companies without deducting from employee salaries as per statutory provisions. Hence, your employer shows them as a cost to the company.
EPF and ESI Deductions
EPF at 12% will be deducted from your salary (Basic + DA), and the same amount of contribution should be paid by the company.
ESI at 1.75% will be deducted from your gross salary, and 4.75% of your gross salary should be contributed by your employer.
Please note that your employer shows the salary breakup as CTC, including bonuses, PLB, ESI, and PF, which will be paid by the company, i.e., the total cost invested by the company.
Regards,
RK
From India, Khammam
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EPF and ESI Deductions
EPF at 12% will be deducted from your salary (Basic + DA), and the same amount of contribution should be paid by the company.
ESI at 1.75% will be deducted from your gross salary, and 4.75% of your gross salary should be contributed by your employer.
Please note that your employer shows the salary breakup as CTC, including bonuses, PLB, ESI, and PF, which will be paid by the company, i.e., the total cost invested by the company.
Regards,
RK
From India, Khammam
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Bonus is a part of the salary/CTC. Somehow, I was asked what PLD is. It is not a part of CTC; it depends on your performance. If any employee does not play a good role in any organization, we can't pay them. This is a profitable part of an organization and is attractive to CTC. Physiologically, the candidate strengthens their wage sheet.
Regards,
Rajendra Prasad Pradhan
(Manager HR/Legal/IR)
PD HR Industrial Consultancy, Bhubaneswar
[Phone Number Removed For Privacy Reasons]
From India, Bhubaneswar
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Regards,
Rajendra Prasad Pradhan
(Manager HR/Legal/IR)
PD HR Industrial Consultancy, Bhubaneswar
[Phone Number Removed For Privacy Reasons]
From India, Bhubaneswar
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CTC SALARY SLIP FORM.xls