An employee joined a company in 2015 when there were no PF and ESI deductions, and was only receiving a salary with PT deductions. In September/October 2019, the employer implemented PF and ESI deductions. We also made some changes to our appointment letter. Now, we want to issue a new appointment letter to everyone with a proper CTC salary structure. His joining date was in October 2015, and PF deductions started in October 2019.
Please suggest how we could incorporate the same line in the letters to avoid any confusion. Note that we had issued an appointment letter when they joined initially, but now we need to update it. Your help is appreciated.
From India, Mumbai
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8Please suggest how we could incorporate the same line in the letters to avoid any confusion. Note that we had issued an appointment letter when they joined initially, but now we need to update it. Your help is appreciated.
From India, Mumbai
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Will it be valid? Here we need to change duration of notice period...
From India, Mumbai
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From India, Mumbai
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In all appointments based on CTC, there are special allowances provided in lieu of ESIC/EPF or NPS and other employee beneficiary benefits. As soon as these schemes come into force or get implemented, the special allowance is reduced to the extent of the contributions. A fresh appointment letter is unwarranted, as it will generate confusion within the work team.
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Thank you.
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Please clarify whether you are considering a change from the general category to a CTC structure. If yes, there is a purpose in formalizing the CTC regime. Otherwise, attempting to re-issue the appointment letter with modifications solely because PF deductions began in 2019 needs to be reassessed. Given that PF deductions have already been implemented, there's no necessity to explicitly notify this, as statutory deductions like PT, TDS, EPF/ESI automatically apply to all relevant payroll aspects, regardless of whether they are explicitly mentioned in the appointment letter. The applicability is not disputable in the absence of specific references in the appointment letter.
It might be advisable to wait until a significant change in emoluments occurs, such as a promotion or salary revision. If and when such changes occur, you could then consider listing all relevant items under CTC and formalizing the structure for better understanding. Issuing a fresh appointment letter at this point solely for EPF reasons may not be advisable.
Thank you.
From India, Bangalore
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It might be advisable to wait until a significant change in emoluments occurs, such as a promotion or salary revision. If and when such changes occur, you could then consider listing all relevant items under CTC and formalizing the structure for better understanding. Issuing a fresh appointment letter at this point solely for EPF reasons may not be advisable.
Thank you.
From India, Bangalore
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Appointment Letter to an Employee for fixed period.doc
Salary structure CTC 15000.xlsx