Dear Seniors, I have received an offer letter. In the deduction area for ESI, they have mentioned that 6.5% will be deducted from the salary. My question is, can the employer deduct only 1.75% from the monthly gross salary, with 4.5% as the company's contribution? Both parts seem to be deducted from the employee itself. Kindly let me know if this is legal as per the ESI ACT. Kindly clarify my doubt.
Regards,
Nataraj
From India, Madras
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Regards,
Nataraj
From India, Madras
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Understanding CTC-Based Offer Letters
If your offer letter is CTC-based, then every cost-to-company shall be included in the compensation. Having said that, this again differs from company to company as per their policy. Companies include the employer's share of benefits, e.g., ESIC, PF, Gratuity, etc., as a cost-to-company. In a CTC-based compensation, find out what will be your monthly gross salary and what will be your net-in-hand salary after deductions.
Regards
From India, Mumbai
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19If your offer letter is CTC-based, then every cost-to-company shall be included in the compensation. Having said that, this again differs from company to company as per their policy. Companies include the employer's share of benefits, e.g., ESIC, PF, Gratuity, etc., as a cost-to-company. In a CTC-based compensation, find out what will be your monthly gross salary and what will be your net-in-hand salary after deductions.
Regards
From India, Mumbai
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