Payroll - Frequently Asked Questions (FAQs)

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CTC Click here
Statutory Deductions Click here
Reimbursements Click here
Income Tax Click here

My Links

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CTC (Cost To Company)

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Q1. What is Prorated Cost To Company (CTC) ?

Cost to Company is the total remuneration (including retirement benefits) receivable by an employee for a given financial year (12 months). There
are scenarios when an employees CTC is payable is in excess / short of the fixed annual CTC. For E.g.
1. If an employees joining date is in the middle of a financial year, the CTC payable to such an employee is a Proration of the CTC, I.e. from the
month of joining till the financial year end, and not for entire 12 month period.
2. In case of salary revision (s) in between the financial year, the CTC payable for the year is a combination of old and revised values, hence is a
prorated value considering before and after revision.
The Prorate CTC report gives the exact view of the Actual amount receivable by an employee for a given financial year in the above scenarios.
This report is available under the tab My Reports\My Flexi link in hrworkwaysindia.com portal.
Q2. I have received Incentive, how is this calculated?
Incentive & other one time payments are made basis inputs received from the Ericsson Team. You may please get in touch with Ericsson team for
the break up for your specific case.
Q3. How is the tax deducted on Incentive amount?
On any one time payments (Un-scheduled payments), the tax will be deducted at source (at the time of payment) at maximum tax rate at which
your income falls. Thus the tax burden is recovered at the instance of payment, and is not apportioned across future months in which you receive
your fixed salary.
Q4. My Salary is less compared to previous month. Why?
You will experience reduced Net Salary in the following scenarios:
1. In case of Loss of Pay (leave without pay).
2. In case of any Onetime deduction.
3. In case of higher tax deduction.
Q5. My CTC is not matching with my gross salary, why?
Your CTC includes Company contribution towards Provident Fund & Gratuity which are retirement benefits. Retirement benefits (16.81% of basic)
dont form part of the monthly pay outs, and are payable at the time of resignation/retirement (conditions apply Hence, your CTC will not directly
translate to monthly gross pay out. Employer Contribution towards PF is deposited directly to your PF account.
Q6. How is my prorated CTC calculated?
The period for prorated CTC is calculation is from 'Date of Joining' till 31st of March of subsequent year.
E.g.: if your DOJ is 1st June, your entitlement of CTC payment would be from June to Mar,(which is 10 months in the financial year). Accordingly
your prorated CTC calculation would be: CTC x 10/12.
i.e., assuming your CTC is Rs.12 lakhs, your prorated CTC would be: 12, 00,000 x10/12=10, 00,000/- payable during the financial year (between
Jun & March)

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Q7. How is arrears calculated?

Arrear payments are made under two scenarios:
1. Salary revision - In case of retrospective revision in salary, the difference between your old CTC and the revised CTC would be paid as arrears
from the month /date of revision.
2. New Joiners - New joiners whose Date of Joining is post the payroll cutoff date, will not part of the payroll cycle in the month joining. In such a
scenario, only the basic salary for the month he/she joined will be paid through cheque and other FBP components will be paid in the subsequent
months salary.
Q8. Will New Joiners get the salary in the same month?
Yes, New joiners will get their salary which will be paid through cheque/ bank transfer mode as per data available with Aon Hewitt.
Q9. I want to contribute to VPF, what is the process for the same?
You are requested to update this information with your respective Ericsson HR team who will provide the input to Aon Hewitt for processing.
Q10. I have updated my PAN on the portal. But the same is not reflecting in other links of the portal?
The PAN details updated will appear on the other relevant links on HRWorkwaysindia portal, with effect from next months payroll data transfer .
Q11. My Salary information is not reflecting on the portal. Why?
In case of New Joiners, the salary details will get updated on the portal only after your first months salary is processed.
Q12. Can I declare my previous employment details on the portal?
As per company policy, the previous employment details have to be declared on the portal under Investment declaration link.
Q13. Can I declare school going children details on the portal?
As per company policy, these details have to be submitted with your Ericsson team. Hence, there is no option to declare this information on the
portal.
Q14. My personal information on the pay slip is incorrect. I want the same to be corrected, how can I do this?
Any change/correction in personal information should be routed through the Ericsson HR team. Once the same is received as an input to us, the
database update would be done accordingly.
Q15. What are Fixed Pay Components?
Fixed Pay Components are those components of CTC, which are fixed by the employer, such as, Basic Salary, Provident Fund, Gratuity, etc. Fixed
Pay Components are not allowed for any changes by an employee due to Policy & Statutory governance.

Statutory Deductions

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Q1. Which are the Statutory deductions?

PF(Provident Fund), PT(Professional Tax), ESI(Employee State Insurance) & IT (Income Tax) are the statutory (Mandatory) deductions.
Q2. How is PF employee contribution calculated?
The PF contribution is calculated @ 12% of your Basic Salary.
Q3. How is PT deduction calculated?
Professional Tax is a statutory deduction fixed by the State Government basis on the gross salary earned by an individual. Each state has different
PT slabs for the same income group.
Q4. How is ESI deduction calculated?
An employee qualifies for ESI deduction if his / her monthly gross salary is less than Rs.15, 000/- and deduction is done at 1.75% of your monthly
gross salary.
Q5. Income Tax Related FAQs Click here
Q6. Is Employer Contribution towards Retiral benefit part of CTC?
Yes, the employer's contribution towards PF is part of CTC & is at 12% and Gratuity is at 4.81% of your basic salary.
Q7. There is a PF deduction on my pay slip, but PF number is not updated. Why? (In case of new joiner)
The PF number will get updated post receipt of PF number input from your employer.

Reimbursement

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Q1. How do I claim Reimbursements?

1. Please log into www.hrworkwaysindia.com using you pin and password.
2. Click My Transaction on the left side of the portal.
3. Click on Claim Reimbursement. Select the component you wish to claim > click on Details tab.
4. Enter your claim details with amount > click on save.
5. Whenever you claim reimbursement an unique bar coded Voucher ID is generated. Please print the Web Claim/ Voucher ID form and attach with
bills.
Following are the reimbursement components and documents to be submitted for each claims, to be submitted in hard copy, drop box along with the
online claim voucher and bills, in the Hewitt drop box provided at your office location for processing payment.
1. Mobile Handset Reimbursement:
As per the company policy, the reimbursement towards mobile handset can be claimed only once in Two years.
Claims should be submitted within 90days from the date of purchase of Mobile handset.
Web Claim/ Voucher ID Form.
Mobile purchase original bills/invoice. Bill should be in the name of emp. only.
Print out of Approval Mail from Unit Head/ Direct Reportee of Unit Head.
Mobile Handset can be purchased from anywhere in India only.
2. Business Attire Reimbursement:
Nature of purchase allowed are clothing, travel bag, suitcase, shoes.
Claimed allowed for International travel only.
Travel authorization mail from Manager and MD required.
Expense can be claimed once in 3 years only.
Maximum amount allowed under this head is Rs.10000/Bill date should not be greater than Travel To date
Bill date should not be prior to 3 months from Travel To date
3. Pre-Employment Medical Expenses:
Pre-Employment medical checkup is mandatory for every new joinee.
Maximum of Rs.1500/- can be reimbursed under this head.
This claim can be allowed only once in lifetime.
Original Bills/receipt form any diagnostic lab allowed.
Amount to be claimed by the employee within 90 days of Joining.

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4.

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Joining Allowance :
Travel by Air (Economy class) / 1st class train fare allowed.
Original ticket with boarding pass for travel by Air required. In case of travel by train, claim can be processed even if ticket not submitted
amount claimed will be processed.
This claim can be allowed only once in Lifetime.
Joining Travel Claim is applicable for Employee, Spouse & Children.
Approval mail from Recruitment SPOC is mandatory.
Amount to be claimed by the employee within 90 days of Joining.
Date of travel should be on or before 10 days of joining date.

5. Joining DA:
Claim allowed for Employees joining from Other locations.
Email confirmation from Guest House mandatory.
Maximum number of days allowed for DA is 14.
Amount applicable based on the type of the city A, B & C and Grade of the Employee.
This claim can be allowed only once in Lifetime.
Amount to be claimed by the employee within 90 days of Joining.
6.

Executive Health checkup :

Amount reimbursable is 85% of the claim or Rs.3000/- whichever is less.
Claim allowed for Diagnostic tests conducted. Original Bill / receipt from Lab / Hospital can be submitted.
Reports needs not be submitted as part of the claim submission.
Expense for any treatment undertaken not allowed to be claimed.
Bill should be in the Name of the Employee.
No claim can be during the first year of Joining.
Claims can be made :a. Once in 3 years upto 30 years of age
b. Once in 2 years upto 35 years of age
c. Once in year beyond 35 years of age

7.

Relocation Allowance :
Approval mail from Recruitment SPOC mandatory with the maximum amount allowed for transfer of goods.
This claim can be allowed only once in Lifetime.
Amount to be claimed by the employee within 90 days of Joining.

8.

Notice period buyout :

Approval from T&A head mandatory
Copy of the Final settlement from the previous employer mandatory.

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9.

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Telephone :
Claim can be made against one Landline or Mobile number only.
Eligible for Employees in Grade 1 and Grade 2 at actuals , Name on the bill need not be checked.
Broadband charges also allowed.
Prepaid bills / receipt not allowed.

10.

Fuel Reimbursement :
Fuel bills/ receipts in original are required.
Bills should be of current FY only.

11.

Chauffer/ Driver Reimbursement :

Driver payment salary slip/ receipt in original for the current FY are required.
Slip should be counter signed by Driver on the revenue stamp

Medical and LTA reimbursement :

As per the company policy, you are required to submit the LTA/Medical reimbursement bills through "Interim Proofs submission" link. The link will
be enabled twice in a FY once in October/November and January/February. The communication regarding the link enable dates will be sent when
link is enabled.
Medical Reimbursement :
Bill should be in the name of the employee or dependents.
Bills for purchase of Medicine, Doctors consultation, Clinical tests etc., are accepted
Bill date should be within the FY. Only bills pertaining to the period Apr to Mar of the current FY will be allowed.
Original bills to be submitted along with the web claim form. Photo copies of bills will be rejected
Overwritten / tampered bills will be rejected , Doctor's prescription for dental and optical.
Cosmetic items in medical bills will be disallowed by Hewitt, based on legibility of the bill items i.e. Hewitt will check the same if the bill items
are legible
LTA reimbursement :
Bill should be in original. Bill should pertain to current financial year. Claim allowed for travel within Indian only.
Original Tickets and Boarding pass mandatory for Air travel. Original tickets or eTickets required for travel by train.
Employees will be required to take a Earned leave of 4 days (Excluding weekend / public holidays / Floating holidays) to avail LTA benefit.
Snapshot from Ericsson ESS/MSS site to be attached as proof of approved leaves.
Travel by Taxi also allowed, however, exemption will be available only to the extent of 1st AC train fare. The distance by the shortest route
will be considered to determine the kilometers traveled.
Travel by Bus allowed .

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Q2. Can I reprint a voucher?

Yes, you can. Click on My Transactions\ Print Claims, which will enable you to reprint the claim voucher.
Q3. Can I view my Reimbursement Claim History?
Yes, you can. Click on to My Reports\My Reimbursement History
Select the Month and the Reimbursement Cycle which you wish to see and you can view your reimbursement slip.
Voucher and Pay component-wise status will be displayed along with paid/rejected amount
Q4. What is the difference between Save and Print Option under Claims?
Save option allows you to save a claim and come back later to edit/modify the claim.
Print option directly generates the voucher with no further flexibility to modify the claim.
Q5. How long does it take for me to receive the reimbursement payments?
Approved claims in the 1st Reimbursement cycle (cut off 10th of the month) will get credited to employees ERA a/c by 3rd week of the current
month.
Approved claims in the 2nd Reimbursement cycle (cut off 20th of the month) will get credited to employees ERA a/c by 1st week of the next month.
Q6. How do I know whether my claims are rejected or approved?
You can click on My Reports\My Reimbursement History link to view the status of your claims. In case a claim is rejected, you can view the reason
by placing the cursor on the rejected column amount for a particular claim, and the reason will appear as pop up.
Q7. Under Medical reimbursement, I am able to submit only 20 bills. How to submit if I have more than 20 bills?
In case of more than 20 bills, you need to create a new additional voucher. For E.g. you have 30 bills and the process will beEnter 20 bills- Save and Generate voucher- Upload the zip file of 20 bills
Enter the next 10 bills - Save and Generate another voucher- Upload zip file of another 10 bills
Q8. What are the documents to be submitted for Medical, LTA, Fuel & Maintenance reimbursements?
Kindly refer the Reimbursement guidelines link on Hrworkways under My Transactions/ Claim reimbursement link for the details.
Q9. How many days of leave should be availed to claim LTA?
Employees will be required to take a Earned leave of 4 days (Excluding weekend / public holidays / Floating holidays) to avail LTA benefit.
Snapshot from Ericsson ESS/MSS site to be attached as proof of approved leaves.
Q10. Can I claim the LTA reimbursement before I travel? What is the current LTA block?
No, once the travel is made, after that only LTA can be claimed by submitting all the supporting documents of travel. Current LTA block is 20142017.

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Q11. Can I claim the LTA reimbursement for my dependent siblings?

Yes, you can. Declaration form will get generated along with the claim reimbursement sheet during the online claim process on Hrworkwaysindia.
This declaration form has to be submitted along with the claim.
Q12. Why you have not sent the communication regarding claim reimbursement status?
Yes communication sent once claims processed. Please go to My Reports\ Claim History to view the status of your claims. In case a claim is
rejected, you can view the reason by placing the cursor on the rejected column amount for a particular claim, and the reason will appear as pop up.
Q13. Can I claim the LTA reimbursement twice in the same FY/CY?
No, the LTA reimbursement can be claimed only once in a Financial Year and for one travel only.
Q14. I have claimed the LTA exemption in the previous block only once. Can I claim the unclaimed exemption in the current block?
If the travel has happened in the last year of the previous block, then the claim can be submitted in the first year of the next block year.
For e.g. in case you have submitted only one claim in the block year of 2010 to 2013, you can submit an additional claim in the first year of the next
block in 2014. However, please note that the travel should have happened in the last year of the previous block which is 2013.
As per the rule, one unclaimed LTA exemption of previous block can be claimed in the first year of next block.
Q15. My claim reimbursement is approved on the portal, but amount not credited yet?
Please recheck your ERA and if it is not credited, you may get in touch with [email protected]. .
Q16.What will happen to the unclaimed reimbursement amount?
This is to inform you that, there will not be any amount paid to you, as your total eligibility towards Medical and LTA is already being paid as taxable
with your monthly salary.
Only the exemption will be considered based on the bills you have submitted through Interim link.
Q17. A duplicate voucher id is created, how do I delete it?
You do not have an option to delete voucher. Please write to [email protected] requesting for voucher deletion with details of the voucher id
and employee id.
Q18. Can I claim Toll bill under LTA reimbursement?
No, toll bills cannot be claimed as LTA reimbursement

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Q19. How my LTA exemption is calculated?

The LTA exemption is processed basis the following LTA rule:Actual travel fare incurred by the employee for journey undertaken by the employee and his family to any place in India qualifies for exemption.
This exemption can be availed for two journeys made in a block of four calendar years. The current block is 2014-2017. There is no quantum of
exemption laid by the Act; however a limit to the extent of economy class airfare or air-conditioned first class train fare has been prescribed.
Any travel concession or assistance received by an individual will be exempt to the following extent:1 .In case of journey by air, air economy fare of the national carrier by the shortest route will be exempt.
2. In case of journey by rail, air-conditioned first class rail fare by the shortest route will be exempt.
3. In case of journey by other means where rail link exists between place of origin of journey and place of destination, air-conditioned first class rail
fare by the shortest route will be exempt.
4. In case of journey by other means where rail link does not exists between place of origin of journey and place of destination, but a recognized
public transport system exists, first class or deluxe class fare on such transport system will be exempt. Where no such public transport system
exists, air-conditioned first class rail fare by the shortest route will be exempt.
Q20. How do I submit my claims after web form generation?
Once Web Form/ Voucher ID (bar coded) is generated, employee need to take print of that & attach all required bills with the approval mail/s.
Attach all documents & staple them properly.
No need to put them in any envelope & just staple them correctly.
Then submit your claim in the drop box available in your office location.
Drop the claim in the Drop box. Employees who are not located at Ericsson Office can courier the claims to :-

Aon Hewitt,
No.332/1, Corporate Miller,
Thimmaiah Road,
Vasantnagar, Bangalore - 560052

Income Tax

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Q1. Where to declare Housing Loan details (Interest & Principal)

The Housing loan interest amount needs to be declared in My Transactions \Investment declaration link under the head "Loss on House Property"
and principal amount under section 80C on "Investment Declaration" link.
Q2. Where to declare ELSS details?
The ELSS details can be declared in My Transactions \Investment declaration link under section 80C, under the head "Mutual Fund
Q3. I am trying to update my PAN details. But the same is not getting updated. Why?
The link to update PAN details will be enabled only between 1st and 20th of every month. You are required to update only during this period.
Q4. I have submitted my investment declarations on the portal. The same is not got updated in my IT computation sheet. Why?
The updated investments will get updated on in IT computation only after one cycle of payroll is processed.
Q5. Where / How to Declare my Investment Declarations?
Steps to be followed:
1. Logon to www.hrworkwaysindia.com, using your 10 digit pin and password
2. Click on "My Transactions" tab
3. Select the link "Investment Declarations"
4. Declare your investments and click on "Submit" button
Q6. I need pay slips prior to 18 months, where can i get the same?
Pay slips for the period prior to 18months are not available for sharing. Please ensure to download pay slips at frequent intervals.
Q7. I need my Payslip to be attested, what is the process?
Please take a print of the pay slips that you would like to attest and get in touch with your Payroll Department
Q8. I am unable to submit my declarations/plan on the portal. Why?
You can submit your declaration only during the scheduled window. Please refer to the link My Transaction\Schedule for details of dates when the
window is open for various updates.
Q9. Where can I view the Housing loan interest on the IT computation Sheet?
Housing loan Interest benefit amount is available on the 1st page of IT computation sheet under "Net Taxable Salary".
Q10. What are current Year Income Tax slabs?
For Male and Female Employees:Rs.0
- 250000
-0
250001
- 500000
- 10%
500001
- 1000000
- 20%
> 1000001
- 30%

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Q11. How is my current month income tax deduction arrived at?

Tax variations happens due to the following reasons:
1.Change in investments declaration If you have changed your investments to a lesser amount, your tax for the month will increase
2.In case you have earned any one time payment in the current month, tax on the same is deducted in full (not apportioned across months) at the
maximum slab at which your income falls. This is as per rule.
Q12. How is the tax on perquisites calculated?
The value of perquisites is added to your total taxable income and taxed on the tax slab in which your taxable income falls under.
Q13. How my HRA exemption is calculated?
As per IT rule, least of the below three criteria qualifies for HRA exemption.
1. Actual Rent paid minus 10% of the Basic Salary
2. 40% of the Basic (50 % in case of Metro Cities Delhi, Mumbai, Chennai & Kolkata)
3. Actual HRA earned
Least of the above three criteria is exempt for tax.
Q14. What is the difference between Mediclaim Insurance and Medical Reimbursement?
Mediclaim Insurance is the premium paid to the service provider which qualifies for tax exemption under section 80D. Medical reimbursement is the
amount expensed on actual medical treatments and qualifies for exemption under section 10, subject to earning Medical Allowance as part of your salary.
Q15. Why is previous employment details not reflected on Forrm-16
The Form 16 issued by Ericsson will not reflect your previous employer income details. This is as per statute.
For computing appropriate tax for the financial year, we do consider the previous employer income and tax details so that the tax deduction for the
financial year is done accurately by the Current employer. Else, there would be additional tax burden on the employee while filing returns. However, at
the time of issuing Form 16, the same is removed as the current employer cannot vouch for the income or tax paid / deducted by the employee during his
employment with another company.
Q16. Why previous employment income is added to my taxable income?
For computing appropriate tax for the financial year, previous employer income and tax details are considered, so that accordingly, appropriate tax is
deducted at the current employment. However, at the time of issuing Form 16, the same is removed as the current employer cannot certify the income
earned by the employee during his employment with another company.
Q17. In the Tax computation sheet, there are 2 columns for earnings, Actual and Projected what is this?
Your total tax liability for a Financial Year is calculated on the basis of your total income for the year. Hence, tax for the year is arrived basis the actual
paid till the current month, plus projected payable salary till the financial year end. Hence, you see the Actual & Projected salary details on IT computation
sheet.

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Q18. I would be resigning in a couple of months, want to know what will be my tax liability?
The exact tax details will be available only after processing your full & final settlement which will most likely have additional earnings / deductions;
which arent available until inputs are provided to that effect. Hence, we will not be in a position to share this info in advance.
Q19. What is the procedure for any resigning employees for submitting his/her Investment Proofs along with Medical/ LTA bills (if any)?
All resigning employees are required to refer the EXIT PROCESS communication shared by Ericsson HR team. It will have the complete
information for all the needful actions.
Q20. What is the procedure for any Inter Company Movement employee for submitting his/her Investment Proofs along with Medical/ LTA
bills (if any)?
All Inter Company Movement employees are also required to follow the same procedure for processing their Full & Final Settlement at their old
Emp. ID.
Q21. I would not be in India for the whole of this year, but my income is projected for the entire FY.
The input of your Date of Leaving is yet to be received from your Ericsson team. Once this information is received, the computation will reflect the
exact Income / Tax for the actual period of your stay in India.
Q22. Will excess tax deducted be refunded to me?
The excess tax deducted in any of the months will get adjusted against the tax payable for rest of the year. This would mean your future months
taxes will be slightly lower than it would have been otherwise.
Q23. I have contributed to various charitable organizations. Why the same is not considered for tax benefit?
The tax benefit towards donations made under section 80G, has to be claimed for refund directly from the IT Department while filing your individual
tax returns. An employer is not authorized to give benefit of tax against donations made by an employee personally.
Q24. Donations which are deducted from our salary to any charitable organizations i.e., Prime Ministers Relief Fund will I get the tax
benefit for the same?
Yes, only those donations which are deducted from your salary by Ericsson, will be considered for tax benefit in your ITCS for the same financial
year automatically. Those employees are not required to declare that donation or to submit any proof for the same.
Q25. What are qualifying Section 10 exemptions?
1. HRA Exemption
2. Medical Exemption
3. LTA Exemption
4. Leave Encashment exemption
Q26. How my Children Education Allowance exemption is calculated?
As per IT rule, Rs.100/- per month per child will be considered for tax exemption under section 10. The benefit can be claimed only for maximum of
2 children (Rs.2400/- max), subject to having Education Allowance as part of your salary.

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Q27. How is my children Hostel Allowance Exemption is calculated?

As per IT rule Rs.200/- per month per child will be considered for tax exemption under section 10 in case of Hostel Allowance exemption. The
benefit can be claimed only for maximum of 2 children subject to having Hostel Allowance as part of your salary.
Q28. Is PF considered for tax benefit? Is the maximum cap u/s 80C includes the PF amount?
Yes, the PF amount will be considered for tax benefit by default and this is part of section 80C, for which the maximum cap limit is Rs.100000/Q29. When can I claim the PRE-EMI interest paid on my housing loan?
The PRE-EMI amount paid on housing loan can be claimed in five equal annual installments, once the property is occupied.

Q30. How can I claim the Interest paid on housing loan, before occupying the property?
As per IT rule, you cannot claim the interest paid for housing loan before taking possession of the property.
Q31. I have a self-occupied property as well as a let-out property. How can i declare this on the portal?
Only the self occupied property can be declared on the portal. As per the Ericsson policy, the Let-out property needs to be claimed with Income tax
department while filing the returns. Only self occupied property can be considered along with the payroll.

Q32. When can I claim the HRA exemption and Housing loan benefit?
As per IT rule, if your Own House and Rented accommodation are in two different cities, only then you will you be able to claim both HRA and
Housing loan benefit.
Q32. What is NPS?
NPS is New Pension Scheme It is available over HRworkwaysindia web portal for declaring the monthly contribution for availing tax benefit under
below link:My Transaction > NPS Declaration
Please refer the below guidelines for submitting the same:Declaration is applicable only for employees who have their valid PRAN Number.
Declaration can be made till 20th of each month.
NPS Salary Definition - NPS Salary is your monthly Basic Salary.
Minimum amount of declaration is INR 1000 and in multiples of INR 500.
Employees entering into NPS will be allowed to alter the contribution amount towards NPS only in June every year only during the window 16th
June 10th July. Except these dates, any change in the existing declaration will not be considered.
Your Composite Allowance will be reduced by NPS Contribution amount and shown as NPS Employer Contribution in ITCS Earnings.
Also deduction will be allowed under Section 80CCD2 (which is over & above 80C limit of Rs. 1 lac)
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