Hi all,
Please, I need urgent advice. I recently received an offer, and upon reviewing the salary breakup, I found it to be peculiar. The company is including the Company's Contribution to PF component in my CTC.
I have been offered a 7.7 lakh package, but the breakup indicates that they are offering me a 7.18 lakh package per annum, with the rest of the amount distributed in additional components.
My question is, is it permissible to add the company's contribution to the PF component to CTC, or is the company's HR trying to manipulate my annual CTC to appear as 7.7 by adding this component to CTC?
Another question I have is, if this addition is allowed, will both my share and the employer's share be deducted from my monthly salary? Will PF be deducted twice from my monthly salary? What will be the exact amount in hand?
Please refer to the attached salary breakup. I urgently need your suggestions as I have to decide whether to accept the offer or not.
Thank you.
From India, Lonavla
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Please, I need urgent advice. I recently received an offer, and upon reviewing the salary breakup, I found it to be peculiar. The company is including the Company's Contribution to PF component in my CTC.
I have been offered a 7.7 lakh package, but the breakup indicates that they are offering me a 7.18 lakh package per annum, with the rest of the amount distributed in additional components.
My question is, is it permissible to add the company's contribution to the PF component to CTC, or is the company's HR trying to manipulate my annual CTC to appear as 7.7 by adding this component to CTC?
Another question I have is, if this addition is allowed, will both my share and the employer's share be deducted from my monthly salary? Will PF be deducted twice from my monthly salary? What will be the exact amount in hand?
Please refer to the attached salary breakup. I urgently need your suggestions as I have to decide whether to accept the offer or not.
Thank you.
From India, Lonavla
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What company adds to CTC is beyond your control?
The company sees the cost to the company when they hire an employee. What the employee sees is what he gets in hand and savings like PF, etc.
What an employee gets is Basic + DA + allowances after reducing PF (Employee share), ESIC (employee share) if any, IT, etc. Analyze your CTC offer carefully and segregate what you will get monthly and what kind of savings are done like PF and medical care like ESIC, etc.
From India, Pune
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3180The company sees the cost to the company when they hire an employee. What the employee sees is what he gets in hand and savings like PF, etc.
What an employee gets is Basic + DA + allowances after reducing PF (Employee share), ESIC (employee share) if any, IT, etc. Analyze your CTC offer carefully and segregate what you will get monthly and what kind of savings are done like PF and medical care like ESIC, etc.
From India, Pune
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C.T.C is a mere accounting tool employed by some companies in India and African countries to arrive at the total cost incurred by the employer per employee per annum in all respects. The inherent purpose being the advance determination of the total cost of employment of an employee per year including the cost of retention.
However, it is used by employers strategically to lure a job aspirant in the matter of salary negotiations prior to appointment. Therefore, in the early phase of salary negotiation itself, the prospective employee should clearly indicate his expected gross salary before the admissible statutory deductions. He should simply ignore the statutory contributions made by the employer towards fringe benefits.
In my opinion, CTC cannot have any legal implications unless it forms part of the contract of employment. By and large, every prospective employee should meticulously analyze the salary offer and make sure what he would have on hand every month after his statutory deductibles only as advised by Mr. Rao.
From India, Salem
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However, it is used by employers strategically to lure a job aspirant in the matter of salary negotiations prior to appointment. Therefore, in the early phase of salary negotiation itself, the prospective employee should clearly indicate his expected gross salary before the admissible statutory deductions. He should simply ignore the statutory contributions made by the employer towards fringe benefits.
In my opinion, CTC cannot have any legal implications unless it forms part of the contract of employment. By and large, every prospective employee should meticulously analyze the salary offer and make sure what he would have on hand every month after his statutory deductibles only as advised by Mr. Rao.
From India, Salem
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Dear Anonymous,
I have gone through the CTC break-up sheet, the fact is as under:
1. The company has shown the company's PF contribution as part of CTC. So, your contribution and the company's contribution will be deducted from your monthly salary at 25% of Basic.
2. The company has also mentioned Gratuity as part of CTC, which is notionally shown as earning. However, since the company will be depositing that amount towards your Gratuity fund, your annual earning shall be deducted at 4.81%, which amounts to Rs. 1071 per year. In your sheet, it has been mentioned as Rs. 12,852. Please check with them.
Otherwise, the mentioned break-up is both legal and logical as per prevalent practices, subject to the agreement of both parties, i.e., the employee and the employer.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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I have gone through the CTC break-up sheet, the fact is as under:
1. The company has shown the company's PF contribution as part of CTC. So, your contribution and the company's contribution will be deducted from your monthly salary at 25% of Basic.
2. The company has also mentioned Gratuity as part of CTC, which is notionally shown as earning. However, since the company will be depositing that amount towards your Gratuity fund, your annual earning shall be deducted at 4.81%, which amounts to Rs. 1071 per year. In your sheet, it has been mentioned as Rs. 12,852. Please check with them.
Otherwise, the mentioned break-up is both legal and logical as per prevalent practices, subject to the agreement of both parties, i.e., the employee and the employer.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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Hi,
CTC is nothing but Cost to the Company. It denotes that the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to understand the details. If there is any issue regarding the latter, you can always ask for an explanation from the HR.
Thanks and Regards
From India, Hyderabad
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CTC is nothing but Cost to the Company. It denotes that the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to understand the details. If there is any issue regarding the latter, you can always ask for an explanation from the HR.
Thanks and Regards
From India, Hyderabad
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