Hi Prabhu,
Due to the new rule of the ESI being increased to 21,000, my employer revised my salary structure without increasing my CTC to cover the employer ESI contribution part. As a result, my salary has been reduced by both the employee's and employer's contributions from my side.
Could you please confirm if the government has strictly instructed employers to increase the CTC for their contribution part, or if employers can adjust the salary structure without increasing the CTC for their benefit?
Regards,
Prabhu H
From India, Namakkal
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Due to the new rule of the ESI being increased to 21,000, my employer revised my salary structure without increasing my CTC to cover the employer ESI contribution part. As a result, my salary has been reduced by both the employee's and employer's contributions from my side.
Could you please confirm if the government has strictly instructed employers to increase the CTC for their contribution part, or if employers can adjust the salary structure without increasing the CTC for their benefit?
Regards,
Prabhu H
From India, Namakkal
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If your current salary is reduced due to implementation of ESI then I do not think there is anything wrong in it. But for better clarity you may share your last salary with current salary structure.
From India, Kolkata
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247From India, Kolkata
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My current fixed salary is 250,000 per annum. My question is, why did my employer, instead of raising the ESI (Employer contribution) in my CTC, adjust the same in my old CTC itself?
Now, my take-home salary has been reduced by nearly 1,100 rupees. Both employee and employer contributions were deducted from my side.
From India, Namakkal
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Now, my take-home salary has been reduced by nearly 1,100 rupees. Both employee and employer contributions were deducted from my side.
From India, Namakkal
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If you were already registered under the ESI Act and participated in it, then you cannot do anything about a change in your salary structure. However, if your employer opted to modify your salary structure to evade provisions of the Act, then it is illegal because their action is detrimental to you as well as national interest.
From India, New Delhi
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From India, New Delhi
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Attached my Salary structure below. Is employer have right to adjust the salary structure without increasing CTC for ESI emplpyer contribution ?
From India, Namakkal
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From India, Namakkal
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The employer can change the salary structure institutionally without an intent to escape his statutory liability. If the employer picks and chooses a few, that might be wrong! If the intent is ill, then a legal remedy can always be looked into.
But, be careful that in a latter case, your employment will always be at the mercy of your employer, regardless of how well you perform.
From India, New Delhi
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But, be careful that in a latter case, your employment will always be at the mercy of your employer, regardless of how well you perform.
From India, New Delhi
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In your case, the gross salary limit is covered under the ESI Act. The change in your take-home salary is triggered by a provision of the Act, so the employer is not obligated to compensate you for the virtual loss. It would be better to speak with your employer and request him with some legitimate grounds.
From India, New Delhi
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From India, New Delhi
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Employer's Obligation for ESI Contributions
The employer cannot deduct his contribution from the salary of the employee. The employer is under an obligation to make ESI contributions of his share from his own funds.
In your case, the employer's actions are illegal and unjustified as they have resulted in a reduction of your salary. Your salary can only be reduced by the amount of your own ESI contribution.
CTC Concept and Legal Recourse
The CTC concept is a commercial concept and is not recognized under various labor laws. You have the option to challenge this action before the appropriate authority if you wish.
Regards,
[username]
From India, Thane
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The employer cannot deduct his contribution from the salary of the employee. The employer is under an obligation to make ESI contributions of his share from his own funds.
In your case, the employer's actions are illegal and unjustified as they have resulted in a reduction of your salary. Your salary can only be reduced by the amount of your own ESI contribution.
CTC Concept and Legal Recourse
The CTC concept is a commercial concept and is not recognized under various labor laws. You have the option to challenge this action before the appropriate authority if you wish.
Regards,
[username]
From India, Thane
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Dear all,
While going through the attachments, it is observed that the employer has changed/revised the salary structure from Rs. 19,149 to Rs. 18,171. No doubt, the basic has increased from Rs. 12,766 to Rs. 13,281, but the gross earnings are reduced by Rs. 978, which is illegal and unjustified.
P. K. Sharma
From India, Delhi
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While going through the attachments, it is observed that the employer has changed/revised the salary structure from Rs. 19,149 to Rs. 18,171. No doubt, the basic has increased from Rs. 12,766 to Rs. 13,281, but the gross earnings are reduced by Rs. 978, which is illegal and unjustified.
P. K. Sharma
From India, Delhi
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Creating a Competitive Salary Structure.doc
Salary Structure.zip