Hi All,
Can anyone help me out with the understanding of general PF deduction rules? If we consider an employee's salary on a CTC basis, how much percentage of PF should be deducted? Similarly, with regards to gratuity, when we mention that the salary is based on CTC, is it correct to deduct gratuity from the very first month of a candidate's joining?
From India, Mumbai
Can anyone help me out with the understanding of general PF deduction rules? If we consider an employee's salary on a CTC basis, how much percentage of PF should be deducted? Similarly, with regards to gratuity, when we mention that the salary is based on CTC, is it correct to deduct gratuity from the very first month of a candidate's joining?
From India, Mumbai
Dear PF is always deducted on basic + DA at a fixed percentage, and the employer also contributes at that rate. For example, if your salary is Basic 5000, DA 2000, HRA 2000, other allowances 3000, and incentives 4000, your PF will be deducted on Rs. 5000 at a rate of 12%, i.e., Rs. 600. The employer will also contribute the same amount. So, the CTC will be 5000 + 2000 + 2000 + 3000 + 4000 + 600, totaling 16600.
Thanks for the reply,
In some companies, the employer states that in the CTC, PF rate is 24% of the basic salary, which means both employer and employee contributions will be deducted. Is it correct to deduct PF contributions from both sides?
Regards
From India, Mumbai
In some companies, the employer states that in the CTC, PF rate is 24% of the basic salary, which means both employer and employee contributions will be deducted. Is it correct to deduct PF contributions from both sides?
Regards
From India, Mumbai
CTC is the cost to the company, so it does not include any deductions made on behalf of the employee, like employee contribution to PF, TDS, etc. Some companies mention 24% PF contributions to add clarity to the structure and avoid confusion later.
Can any one tell me hw we devide salary into the structure of basic hra da convence etc... is there any hardcore rule or we can set all these as per company’s preference....
From India, Delhi
From India, Delhi
Hi it is company specific. i am uploading one of the file available in this forum for your reference. rgds vishwanath
From India, Bangalore
From India, Bangalore
Dear Mr. Vishwanath, I study the salary sheet send by u pls. explain me wht is PT. Why u take uniform allowance Rs.1000/- & medical allowance 650/- Regards, Arti Chopra
From India, New Delhi
From India, New Delhi
professional Tax Salary Tax. Rs 5001-6000 60 6001-10000 80 10001-15000 100 15001-20000 150 20000 ABOVE 200
From India, Hyderabad
From India, Hyderabad
Dear Manasa, but i Havent Listen abot Professional Tax, In Salary Structure, is it compulsory or optional for the company.
From India, Bhopal
From India, Bhopal
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