Dear All,
recently i was joined a new IT company where one of my Deptt.
head argue with me regarding Employee PF contribution is a part of CTC or
including CTC.
As per his Opinion if we deduct Employee PF contribution from his Gross salary and if we pay this salary then it is including in CTC.
i am littlebit confuse plse help me the same
regards
Sharada
From India, Pune
9recently i was joined a new IT company where one of my Deptt.
head argue with me regarding Employee PF contribution is a part of CTC or
including CTC.
As per his Opinion if we deduct Employee PF contribution from his Gross salary and if we pay this salary then it is including in CTC.
i am littlebit confuse plse help me the same
regards
Sharada
From India, Pune
Consider following example :
Example 1
Basic + DA = 100 ( Say Rs. 100/- is Minimum Wages as on 30 Nov 09)
In the above case employer has to pay Rs. 24/- towards PF. (Employer cont. cannot be recovered from employee )
Example 2
Basic + DA = 300 ( Rs. 300/- exceeds minimum wages )
In this case employer can work-out the CTC calculation as follows :
Basic + DA - 100
HRA - 50
Conveyance - 50
Spl. Allow - 88
PF - Employer Cont - 12
----------
300/-
---------
In the above CTC Stucture you are paying more than minimum wages. Hence if the employer contribution is merged in CTC that is not contravention of Law.
Thanks,
From India, Mumbai
Example 1
Basic + DA = 100 ( Say Rs. 100/- is Minimum Wages as on 30 Nov 09)
In the above case employer has to pay Rs. 24/- towards PF. (Employer cont. cannot be recovered from employee )
Example 2
Basic + DA = 300 ( Rs. 300/- exceeds minimum wages )
In this case employer can work-out the CTC calculation as follows :
Basic + DA - 100
HRA - 50
Conveyance - 50
Spl. Allow - 88
PF - Employer Cont - 12
----------
300/-
---------
In the above CTC Stucture you are paying more than minimum wages. Hence if the employer contribution is merged in CTC that is not contravention of Law.
Thanks,
From India, Mumbai
Dear all,
I am sending the salary slip format of one of my friend's company.
Earnings Deductions
Basic 15,000 PF 1,560
HRA 7,500 TDS 1,000
Convey 800 Food coupons 1,000
Medical allow 1,250
Spl.allow 3,670
PF 780
Food allowance 1,000
----------- -----------
Gross Pay 30,000 Gross Deductions 3,560
----------- ----------
Net Pay: Rs. 26,440/-
Pls. clarify me whether this type of payslip structure is right or wrong. And also tell me the righ method in calculating the salary slip.
Thanks
regards,
kathir
From India, Madras
I am sending the salary slip format of one of my friend's company.
Earnings Deductions
Basic 15,000 PF 1,560
HRA 7,500 TDS 1,000
Convey 800 Food coupons 1,000
Medical allow 1,250
Spl.allow 3,670
PF 780
Food allowance 1,000
----------- -----------
Gross Pay 30,000 Gross Deductions 3,560
----------- ----------
Net Pay: Rs. 26,440/-
Pls. clarify me whether this type of payslip structure is right or wrong. And also tell me the righ method in calculating the salary slip.
Thanks
regards,
kathir
From India, Madras
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