Hello all, I wanted to know about the deduction of PF from CTC. Where does PF and Pension fund get collected? In the same account or different? What is the take-home pay for an employee after the deduction of PF? Is it after a total of 24% or 12%?
If someone could help me with an example of salary bifurcation and let me know what is received by an employee.
From India, undefined
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If someone could help me with an example of salary bifurcation and let me know what is received by an employee.
From India, undefined
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Hello Sharddha,
PF is deducted at 12% of the basic from the employee's gross salary, and 12% is paid by the employer (which is part of CTC). Now, the entire amount of 12% of the employee's contribution will go into the PF account, and from the employer's share, 3.67% will go into the PF account, and 8.33% will go into the pension account. If you need any further details, please provide your CTC breakup so that I can tell you what your net salary will be after all deductions.
Regards,
Manish
From India, Ahmedabad
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50PF is deducted at 12% of the basic from the employee's gross salary, and 12% is paid by the employer (which is part of CTC). Now, the entire amount of 12% of the employee's contribution will go into the PF account, and from the employer's share, 3.67% will go into the PF account, and 8.33% will go into the pension account. If you need any further details, please provide your CTC breakup so that I can tell you what your net salary will be after all deductions.
Regards,
Manish
From India, Ahmedabad
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Dear members,
The PF deduction depends on the gross payable salary considered by the employer. The CTC sheet is generally split into two parts:
1 - Month Payable Salary (Containing all payable emoluments like Basic, DA, HRA, Allowances, Incentives, etc., of which only deductions are made like PF, ESI, PT, Absent days, advance, etc.).
2 - Gross Salary (containing employer's contributions towards PF, ESI, PT, Annual Bonus, etc.).
When processing the salary, if No. 1 salary is considered, then employer PF contribution should not be deducted. However, if the gross salary is processed as per No. 2, then the employer PF Contribution can be deducted.
I would like to provide the proper breakup of your CTC and details of your monthly salary so that fellow members can give correct and desirable comments on it.
From India, Delhi
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The PF deduction depends on the gross payable salary considered by the employer. The CTC sheet is generally split into two parts:
1 - Month Payable Salary (Containing all payable emoluments like Basic, DA, HRA, Allowances, Incentives, etc., of which only deductions are made like PF, ESI, PT, Absent days, advance, etc.).
2 - Gross Salary (containing employer's contributions towards PF, ESI, PT, Annual Bonus, etc.).
When processing the salary, if No. 1 salary is considered, then employer PF contribution should not be deducted. However, if the gross salary is processed as per No. 2, then the employer PF Contribution can be deducted.
I would like to provide the proper breakup of your CTC and details of your monthly salary so that fellow members can give correct and desirable comments on it.
From India, Delhi
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