Hi,
I am looking for a job change in an HR Generalist profile in Bangalore. Can anyone share the information? I have over 5 years of experience in an HR Generalist profile.
Mail to: vidyanayakh@gmail.com / 9902593269
From India, Bangalore
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1I am looking for a job change in an HR Generalist profile in Bangalore. Can anyone share the information? I have over 5 years of experience in an HR Generalist profile.
Mail to: vidyanayakh@gmail.com / 9902593269
From India, Bangalore
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Hi Dnyaneshwar,
As you correctly mentioned, admin charges are not part of compensation. However, we are discussing CTC, and if the employer includes the costs associated with an employee in the employment contract, then the 1.61% is also a cost related to a specific employee. It is a cost that the company pays towards an employee to the government. Therefore, CTC should be 12% (employee) + 13.61% (employer) + ESI where applicable.
Additionally, a new ruling has increased the bonus limit to a minimum of 11% and a maximum of 20%.
Regards,
Anuradha
From India, Mumbai
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As you correctly mentioned, admin charges are not part of compensation. However, we are discussing CTC, and if the employer includes the costs associated with an employee in the employment contract, then the 1.61% is also a cost related to a specific employee. It is a cost that the company pays towards an employee to the government. Therefore, CTC should be 12% (employee) + 13.61% (employer) + ESI where applicable.
Additionally, a new ruling has increased the bonus limit to a minimum of 11% and a maximum of 20%.
Regards,
Anuradha
From India, Mumbai
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Hello Anuradha,
Thank you for updating us on the latest amendment in the bonus act. CTC (Cost to Company) refers to the contract between employers and employees for finalizing individual compensation benefits, which could be on a return basis, such as the PF amount, or involving future risk factors like ESI, WC premium, etc.
If you have noticed, PF administrative charges are neither part of the return-based compensation nor part of any risk factor compensation; therefore, they are not applicable to employees as they do not constitute compensation.
I hope this clarifies your doubts.
Regards, Dnyaneshwar
From India, Pune
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Thank you for updating us on the latest amendment in the bonus act. CTC (Cost to Company) refers to the contract between employers and employees for finalizing individual compensation benefits, which could be on a return basis, such as the PF amount, or involving future risk factors like ESI, WC premium, etc.
If you have noticed, PF administrative charges are neither part of the return-based compensation nor part of any risk factor compensation; therefore, they are not applicable to employees as they do not constitute compensation.
I hope this clarifies your doubts.
Regards, Dnyaneshwar
From India, Pune
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Dear all,
I have joined as an HR Generalist a few days back and am trying to understand the job. Please let me know if my understanding is correct.
CTC: Any cost incurred by the company in hiring.
Gross = CTC - (PF + gratuity contribution by the company)
Net = Gross - (PF + Professional tax)
Is my interpretation correct?
Thank you.
From India, Bangalore
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I have joined as an HR Generalist a few days back and am trying to understand the job. Please let me know if my understanding is correct.
CTC: Any cost incurred by the company in hiring.
Gross = CTC - (PF + gratuity contribution by the company)
Net = Gross - (PF + Professional tax)
Is my interpretation correct?
Thank you.
From India, Bangalore
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Hello All,
As explained by “boss2966” there are 3 classifications of salary.
1. Net Take Home
2. Gross
3. CTC
CTC is the part where most of the employers play with the compensation offered to the employee. Say, you are offered CTC Rs. 7500 then calculation will be like this... (assumption only)
Basic : 3200
Medical Allowance : 1250
HRA : 1495
Conveyance : 800
----------------------
Gross : 6745 (Part A)
Now ADD... (Though actualy it is deduction but it forms the whole CTC)
PF Employer Cont. : 435.52 (12% of Basic + 1.61 %Admin Charge)
ESI Employer cont. : 320.39 (4.75 % of Gross)
-----------------------
CTC : 7500.91 (Part B)
Less ...
PF Employee Cont. : 384 (12% of Basic)
ESI Employee Cont. : 118.04 (1.75% of Gross)
502.04 (Part C)
----------------------
NET TAKE HOME : Part A – Part C
: = 6243
From above calculation, now you must have come to know what exact net take home salary would be
From India, Mumbai
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As explained by “boss2966” there are 3 classifications of salary.
1. Net Take Home
2. Gross
3. CTC
CTC is the part where most of the employers play with the compensation offered to the employee. Say, you are offered CTC Rs. 7500 then calculation will be like this... (assumption only)
Basic : 3200
Medical Allowance : 1250
HRA : 1495
Conveyance : 800
----------------------
Gross : 6745 (Part A)
Now ADD... (Though actualy it is deduction but it forms the whole CTC)
PF Employer Cont. : 435.52 (12% of Basic + 1.61 %Admin Charge)
ESI Employer cont. : 320.39 (4.75 % of Gross)
-----------------------
CTC : 7500.91 (Part B)
Less ...
PF Employee Cont. : 384 (12% of Basic)
ESI Employee Cont. : 118.04 (1.75% of Gross)
502.04 (Part C)
----------------------
NET TAKE HOME : Part A – Part C
: = 6243
From above calculation, now you must have come to know what exact net take home salary would be
From India, Mumbai
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As per the PF Act, the employer has to pay their contribution towards PF and other administrative charges, which amounts to 13.61%. They are only required to deduct 12% from the salary of the employee. If you check your payslip, you will notice that there is no deduction from your salary sheet for the employer's contribution.
However, CTC means Cost to Company, which is all-inclusive. In your appointment letter, the company will display the contribution paid from their end, not the amount that will be deducted from your salary as per the statute.
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However, CTC means Cost to Company, which is all-inclusive. In your appointment letter, the company will display the contribution paid from their end, not the amount that will be deducted from your salary as per the statute.
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Dear Heena,
If you are so worried about PF contribution being 24%, why not avoid PF and request them to adjust the same in other components such as basic pay and other allowances. However, you must fall above the PF bracket to fill Form 11.
Usually, companies deduct PF at 24%.
Regards,
Arjun (9224408539)
From India, Mumbai
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If you are so worried about PF contribution being 24%, why not avoid PF and request them to adjust the same in other components such as basic pay and other allowances. However, you must fall above the PF bracket to fill Form 11.
Usually, companies deduct PF at 24%.
Regards,
Arjun (9224408539)
From India, Mumbai
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CTC is Cost to the Company. It includes everything that company pays to an employee, such as employer as well as employee contribution to PF, employer as well as employee contribution to ESI, etc.
From India, Mumbai
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From India, Mumbai
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Dear All,
I would like to outline the contributions and deductions as per the PF Act for each employee and employer, as detailed below on the combined challan:
1. Account No. 1:
- Employee: 12% on Basic
- Employer: 3.67% goes to Provident Fund (PF)
2. Account No. 2:
- Employer: 1.1% deducted as Admin Charges of PF on Basic Wages
3. Account No. 10:
- Employer: 8.33% goes to Employee Pension (EPS)
4. Account No. 21:
- Employer: 0.5% goes to EDLI
5. Account No. 22:
- Employer: 0.01% deducted as Admin Charges of EDLI
Total:
- Employee: 12%
- Employer: 13.61%
This means the total amount of PF contribution is 25.61% from both the employee and employer.
Thank you.
From India, Nasik
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I would like to outline the contributions and deductions as per the PF Act for each employee and employer, as detailed below on the combined challan:
1. Account No. 1:
- Employee: 12% on Basic
- Employer: 3.67% goes to Provident Fund (PF)
2. Account No. 2:
- Employer: 1.1% deducted as Admin Charges of PF on Basic Wages
3. Account No. 10:
- Employer: 8.33% goes to Employee Pension (EPS)
4. Account No. 21:
- Employer: 0.5% goes to EDLI
5. Account No. 22:
- Employer: 0.01% deducted as Admin Charges of EDLI
Total:
- Employee: 12%
- Employer: 13.61%
This means the total amount of PF contribution is 25.61% from both the employee and employer.
Thank you.
From India, Nasik
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