Hi all,

There is a company in Bangalore that I cannot name at this stage, which post May 2010 is deducting the full 6.5% ESIC contribution from the employee, saying they can't afford to pay the 4.75% contribution.

What action can the employee take and where can he complain? Please see if my example is correct: Salary for the month including all allowances is Rs. 12,927. The deduction done by the company this month for ESIC is Rs. 840.25, but according to me, it should only be Rs. 226.25.

Please let me know URGENTLY if I am right and what legal action can be taken.

Thanks, Amyt

From India, Bangalore
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Hi Amit,

If any company is deducting ESIC contribution at 6.5% per month from an employee's salary, which is illegal, I suggest that the employee should have his/her current salary slip stating that ESI contribution has been deducted as mentioned above. The employee can then go to the ESIC Regional Office to meet the Regional Director with a written application to resolve the issue.

I am confident that the Regional Director will assist and resolve the matter positively.

Thanks and regards,
Amit Tyagi

From India, Delhi
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I agree to the reply. first of all its very important to ask for the salary slip from your employer
From India, Pune
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ESI Eligibily is only upto 10,000 Rs Salary, not to more than 10,000 /- salary holders, for them mediclaim policy exists...
From India
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Dear Amyt,

As suggested by Mr. Tyagi, no company can deduct a total of 6.5% from the employees' salary. Their share of contribution is 4.75%. Please get in touch with your regional ESIC office for the same. You can take your salary slip along as proof.

Regards,
Shveta Sharma

From India, Mumbai
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dear in this condition employer will not show that it is deducted from employee salary, so it can not be mentioned in salary slip.whatever salary you have mentioned it might be CTC.
From India, Delhi
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Dear Amyt,

Firstly, I agree with Mr. Tyagi. However, you should have already confirmed at the time of the interview about that. They will always talk about CTC, and CTC means "Cost to Company," including the employee and employer parts.

Regards,

Madan Mohan Verma
madan.hrd@gmail.com

From India, New Delhi
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Can the company change the salary arbitrarily from the current month , that is reduce the basic and cut exactly 4.75% of gross? Also, shows 1.75% as Employee’s deduction on payslip.
From India, Bangalore
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