Dear All,
PF contribution should be from both the parties (employer & employee)
Is company liable to ask the employee to contribute for the whole amount from the employees pocket for EPF (In such case, Company is not paying any penny towards employee’s PF).
Please advise.
Thanks,
Arockia
From India, Madras
Acknowledge(0)
Amend(0)
PF contribution should be from both the parties (employer & employee)
Is company liable to ask the employee to contribute for the whole amount from the employees pocket for EPF (In such case, Company is not paying any penny towards employee’s PF).
Please advise.
Thanks,
Arockia
From India, Madras
Acknowledge(0)Amend(0)
Hi Arockia!
All deductions and benefits depend on the design of your salary. If the salary is stated as CTC (Cost to Company), contributions and deductions will be made from your CTC. If the salary is stated as Gross Salary, then both parties have to contribute their own parts.
Hope you will understand what you wanted to know.
From India, New Delhi
Acknowledge(0)Amend(0)
9All deductions and benefits depend on the design of your salary. If the salary is stated as CTC (Cost to Company), contributions and deductions will be made from your CTC. If the salary is stated as Gross Salary, then both parties have to contribute their own parts.
Hope you will understand what you wanted to know.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Ms. Arockia,
Employers' PF contribution is a cost to the company, whereas Employees' PF will always be deducted from his/her salary. This way of showing the employers' contribution and including it in the CTC is not actually correct according to statutory acts. Essentially, the employers' contribution to PF is deducted from the gross salary, resulting in the net salary.
Thank you.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Employers' PF contribution is a cost to the company, whereas Employees' PF will always be deducted from his/her salary. This way of showing the employers' contribution and including it in the CTC is not actually correct according to statutory acts. Essentially, the employers' contribution to PF is deducted from the gross salary, resulting in the net salary.
Thank you.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Hello Sharma & Sharmila,
Thank you for your prompt response. Sharma, please clarify more on "[COLOR="Yellow"] "if salary is stated CTC (Cost to Company), contribution and deductions will be made from your CTC"[/COLOR]. (In such a case, the salary component states as CTC).
Thanks, Arockia
From India, Madras
Acknowledge(0)Amend(0)
Thank you for your prompt response. Sharma, please clarify more on "[COLOR="Yellow"] "if salary is stated CTC (Cost to Company), contribution and deductions will be made from your CTC"[/COLOR]. (In such a case, the salary component states as CTC).
Thanks, Arockia
From India, Madras
Acknowledge(0)Amend(0)
Hello!
CTC stands for Cost to Company, where the company accounts for every single penny spent on its employees, including Basic salary, DA, Allowances, PF & ESI Contribution, perks, incentives, bonuses, gratuity, medical policy, etc. Expenses for tea, meals, vehicles, mobile phones, telephones, and electricity used by employees are not included in it.
I hope you understand now.
From India, New Delhi
Acknowledge(0)Amend(0)
CTC stands for Cost to Company, where the company accounts for every single penny spent on its employees, including Basic salary, DA, Allowances, PF & ESI Contribution, perks, incentives, bonuses, gratuity, medical policy, etc. Expenses for tea, meals, vehicles, mobile phones, telephones, and electricity used by employees are not included in it.
I hope you understand now.
From India, New Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf