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It depends. If the employers contribution of 12% is included in your annual salary component (also called CTC) then yes, it is legal.

For ex: If as per your offer letter - Monthly Salary = Rs. 10000 and Annual Salary = 1,34,400/- Then the employer contribution of 12% of your salary is included in your annual salary. So, if the employer deducts 2400 from your monthly salary it is legal.

However, if your monthly salary = Rs. 10,000 and Annual Salary = Rs. 1,20,000/- and still your employer deducts 2400 from your salary it is illegal

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12y ago

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