Dear All,
We are going to appoint a new employee, and before joining, he submitted his Salary Slip which is as follows:
Basic - 9500.00
HRA - 4875.00
Convey - 3125.00
Total - 17500.00
Deductions:
PF @ 12% of Basic - 1140.00
Canteen - 1000.00
ESIC @ 1.75% of Basic - 166
LWF - 5.00
Take home - 15189.00
My Questions:
1. His gross is above 10,000/-, then why is the company deducting ESI? As per the candidate, it is a mutual understanding between the company and him because he wants to avail the ESI benefit. Is it a legal practice?
2. If it is legal, then why is it only in Basic, not in Basic + HRA + Convey? According to the candidate, it is in Basic only because his gross is above 10,000/-. Is it legal?
Please provide your suggestion with legal reference.
From India, Faridabad
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1We are going to appoint a new employee, and before joining, he submitted his Salary Slip which is as follows:
Basic - 9500.00
HRA - 4875.00
Convey - 3125.00
Total - 17500.00
Deductions:
PF @ 12% of Basic - 1140.00
Canteen - 1000.00
ESIC @ 1.75% of Basic - 166
LWF - 5.00
Take home - 15189.00
My Questions:
1. His gross is above 10,000/-, then why is the company deducting ESI? As per the candidate, it is a mutual understanding between the company and him because he wants to avail the ESI benefit. Is it a legal practice?
2. If it is legal, then why is it only in Basic, not in Basic + HRA + Convey? According to the candidate, it is in Basic only because his gross is above 10,000/-. Is it legal?
Please provide your suggestion with legal reference.
From India, Faridabad
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It seems totally fake. If he is from manufacturing, then the general practice is to deduct PF only up to 6500. Secondly, no one will put more than 800 in conveyance. Thirdly, it is totally amazing that ESI deduction is on basic. Firstly, an employee having a gross above 10000 is not eligible for ESI. Taking continuity of the contribution period as a factor, then it should also be deducted from the gross salary. Why don't you ask him for his last bank statement or contact the HR of his last company.
From India, Delhi
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From India, Delhi
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Salary slip final.xls
Salary slip.doc