I'm an employee in an education based organisation. My monthly salary is ₹15000. My employer deducted ₹944 from salary as ESI. On my research, it showed that they can deduct only 1.75% from my salary. Instead, they have deducted the whole 6% from my salary.
Can they do it? Can I ask them to stop deducting that much?

From India, Bengaluru
Anonymous
7

You have provided very little information about your employment.
Yet, as per standard, I can share my view on this matter.
You might have joined the company recently and the offered salary would have been in CTC (Cost to Company).
If your salary is in CTC, then both the share of ESIC (PF and LWF contribution as well) contribution i.e. 1.75% and 4.75% will be deducted from the offered salary.
Rest can be suggested after knowing exact detail of your employment.

From India, Varanasi
Dear Friend, ESI Deduction is as below:
Employee share @1.75% on the Gross Salary Earned
Employer share @4.75% on the Gross Salary Earned
Total Share @6.5%
Please ask your Employer to restrict Employee share @1.75%
Alternatively, log in to ESI IP PORTAL with your ESI Insurance # & find out details of Contributions remitted.
Please upload your Pay Slip for more clarity

From India, New Delhi
Dear friend,
Basis the info given by you, I assume rs. 15k is your total ctc per month. Total Ctc is the sum of your earnings and contribution amount made by the employer towards retrials and benefit schemes like pf, group insurance, gratuity etc. Hence the Employer contribution of esi, pf will form a part of total Ctc.
Hope this clarifies your doubt.
Regards
Rahul

From India, Delhi
Aks17
116

Hi
Yes you may ask the employer not to deduct more than 1.75% of your gross salary as of now.But make sure that the amount is calculated proper. You may even ask the employer to reimburse the excess amount deducted from your salaries if this has been done in the past too.
Thanks and Regards

From India, Hyderabad
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