[Question] Unlawful Deduction

[Tyan Skye]

Hi Good Day

I queried an issue with my Hr and Payroll department about a benefit (medical insurance) which I am not suppose to pay for. A change of ownership took place (section 197) and as to my understanding is that the previous contractual agreement and obligations will move over as is from Company A to Company B. My Previous employer paid for the benefit funds which was our provident fund and medical insurance. Company B says that they are paying for med ins which is part of Total cost to company but on my payslip the med ins is under my deductions and not under the total cost company section on my payslip. Where the provident fund is listed. I questioned it with payroll and Hr explained to me that the medical insurance cost is build into my salary and therefore it has to show as a deductable for tax purposes and for proof to state that the service is being for. This does not make sense to me as to they are stating that the company is absorbing the cost for the service rendered but the amount is being deducted off my salary on my payslip. Please help as I am confused

[Dave A]

I questioned it with payroll and Hr explained to me that the medical insurance cost is build into my salary...

Perhaps the medical insurance cost has been added into the remuneration line and is no longer reported separately? You"ll have to compare the numbers before and after the change to be sure.

[Tyan Skye]

Should it not show as a separate component?
As they advised that its part Total cost to company and therefore its build into salary.
All the other components in the Cost to company section are there.




I attached an example

[Dave A]

Should it not show as a separate component?

It would certainly be more transparent that way, but they are certainly not obliged.

The main issue from your point of view is that you are receiving the value...
As stated previously, to prove what they say is true or false will need a comparison of numbers before and after the change.