Mercutio Peters (Proprietor) 01 April 2015

Splitting of salary causes a big loss to retiral benefits

I have been an employee of Genpact Ind Pvt Ltd from Oct 30th 20003 to Aug. 2nd 2013 prior to my resignation I had addressed the leadership on certain anomalies that I had observed in my Salary (Payslip) PF /Gratuity contribution and amount etc.

a) At the time of appointment my salary break-up sheet indicates that 12% of the employers contribution goes directly to the Government but no such indication of the company’s contribution is seen in the Full and Final Settlement Statement break up.

b)The basic salary is divided into various components, (3 types of special allowances) which adversely affects the PF payout /contribution.

and, I understand, is not permissable by law.

c)This in turn affects the Gratuity payout, which again is a retirement benefit.

d) No Variable Dearness Allowance in the salary, .

e) ESI contribution was deducted from Nov 2003 but the facility was made available in Fed 2010, I fail to undertand how/why the company will begin deduction 7 years before the service/facility is made available.

How do I claim my legitimate dues?

Is there a Forum/Organization that will help in the legalities?

Thanks and regards

Mercutio Peters

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1 Replies

Kumar Doab (FIN) 01 April 2015

Any deduction from earned wages/salary has to be shown in wage/salary slip.Other than statutory deductions e.g. PF,ESIC,TDS no deduction can be made from earned wages without explicit consent of employee. Salary slip has to be provided to all employees.

1. The 12 deduction might be of PF. Equivalent contribution has to made by employer.

2. For salary break up refer to appointment letter/CTC break up/corrigendum/subsequent communications announced to you and accepted by you. Any change has to accepted by employee.

If no change was communicated in writing but salary slips were provided then company may claim it as deemed acceptance,However let your that has examined all docs on record may opine finally on it to you.

3. VDA; refer to notifications issued by CLC.

4. If ESI contribution was deducted then it has to be provided. YOU can lodge complaint with jurisdictional ESIC office and stake claim for refund of employee+employer's contribution+compensation+penalty.

Your counsel may opine to approach;

Inspector appointed under; Payment of Wages Act, Shops and Establishments Act, Min.wages Act,O/o Labor commissioner, RPFC,ESIC etc..