Hi
My CTC is 59189 / per month ,Salary break up is (Basic - 29302 ,HRA - 17581 ,Conv - 2930 ,Med - 2930 ,LTA -2930 and PF - 3516 )
PF 3516 mentioned is the employer contribution , apart from this same amount was deducted from my salary as employee contribution .
Recently My employer has informed that they will deposit only 780 rupees as employer PF contribution and refused to pay the rest amount (3516- 780 = 2736) as my salary .
but my CTC hasn't changed , and till now they haven't provide any new document for change CTC .
Please let me know whether i am eligible to get those extra money or not
Thaks
From India, Bangalore
My CTC is 59189 / per month ,Salary break up is (Basic - 29302 ,HRA - 17581 ,Conv - 2930 ,Med - 2930 ,LTA -2930 and PF - 3516 )
PF 3516 mentioned is the employer contribution , apart from this same amount was deducted from my salary as employee contribution .
Recently My employer has informed that they will deposit only 780 rupees as employer PF contribution and refused to pay the rest amount (3516- 780 = 2736) as my salary .
but my CTC hasn't changed , and till now they haven't provide any new document for change CTC .
Please let me know whether i am eligible to get those extra money or not
Thaks
From India, Bangalore
They need not pay you the difference as it is in CTC which is a costing factor..They cannot restrict their contribution to Rs 780/-.W.E.F Sept 1 they have to pay Rs 1800/- as employer's contribution.Out of that Rs 1250/ will go to EPS and Rs 550/ will go to PF .As per Hon SC's decision in Marathwada Gramin bank case employer can limit his contribution to 12% of statutory limit ie, Rs 15000/- w.e.f 1.9.2014.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
912Varghese Mathew
09961266966
From India, Thiruvananthapuram
please anybody explain me if any employee salary is 20,000 (basic+da) then what is deduction structure (pf+pension+edli+admin charges etc)
From India, Pune
From India, Pune
In technical terms, under indian law, there is no concept called CTC.
The law only recognises gross salary. You should always negotiate based on gross salary. CTC is a tool to make a fool of employee.
However, in civil law or contract law, what is promised must be paid. If they have shown PF on full salary, they are required to give it to you as it would belong to you when it is deposited in PF account. To that extent you can fight with them to deposit full PF not just on the ceiling limit. Else, they should give you that money if they don't deposit in PF.
But you need to see what they actually promised you in writing. Did they specify the CTC and give it's breakup along with your appointment letter ? Is it on company letterhead or from company email account ? Or have they only given only the gross amount. If so, then under contract law also you have no remedy
Again, in the real sense, you have no remedy. You can not take legal action against your employer, unless you want to get kicked out. Legal remedy is very very expensive and goes on for years. So it's no solution.
If you are a critical resource and the company wants to retain you, then you have a leverage. You can go to the person who recruited you or to your top management and tell them that you are disappointed that HR is playing around with your remuneration and deviating from what you were promised and you would like their intervention. But then focus not on them giving you the differential in your salary, but paying it into the PF account as promised in CTC while you were recruited
Hope this helps.
From India, Mumbai
The law only recognises gross salary. You should always negotiate based on gross salary. CTC is a tool to make a fool of employee.
However, in civil law or contract law, what is promised must be paid. If they have shown PF on full salary, they are required to give it to you as it would belong to you when it is deposited in PF account. To that extent you can fight with them to deposit full PF not just on the ceiling limit. Else, they should give you that money if they don't deposit in PF.
But you need to see what they actually promised you in writing. Did they specify the CTC and give it's breakup along with your appointment letter ? Is it on company letterhead or from company email account ? Or have they only given only the gross amount. If so, then under contract law also you have no remedy
Again, in the real sense, you have no remedy. You can not take legal action against your employer, unless you want to get kicked out. Legal remedy is very very expensive and goes on for years. So it's no solution.
If you are a critical resource and the company wants to retain you, then you have a leverage. You can go to the person who recruited you or to your top management and tell them that you are disappointed that HR is playing around with your remuneration and deviating from what you were promised and you would like their intervention. But then focus not on them giving you the differential in your salary, but paying it into the PF account as promised in CTC while you were recruited
Hope this helps.
From India, Mumbai
Thank You saswat for information . My company gave the CTC detail in the Official letter head to me with the break up's .PF is a part of my CTC . Now they are just depositing 780 rupees as employee Contribution .
Can i ask them to pay me the rest as my salary .
From India, Bangalore
Can i ask them to pay me the rest as my salary .
From India, Bangalore
Please read my earlier post very carefully.....
it has lots if "ifs" and "buts" in it.
you can not "claim" or "demand" it.
Because there is no way as such to enforce CTC.
As i said, it depends on who you are, how important you are to the company, how critical they think it is, to retain you...
If you think you are important (or that the company went through a lot of efforts to get you on board), and therefore have a leverage, go and talk to the person who recruited you. Tell him that you feel cheated as what was told to you as CTC is not what the company is actually providing to you and that you feel its wrong for a company of this standing to do something like that.
Going by the ethics as well as contract / tort jurisprudence, they should give that money to you as PF only and there is no direct justification to say increase my take home salary. On the the other hand, you can always say that you dont need to give it to PF so as per your promise (on letterhead), that money rightfully should come to me as higher salary....
I know i am not giving an answer but 2 different answers, each of which are mutually exclusive. But that is what it is, and you need to decide which of the 2 paths is best for you.
From India, Mumbai
it has lots if "ifs" and "buts" in it.
you can not "claim" or "demand" it.
Because there is no way as such to enforce CTC.
As i said, it depends on who you are, how important you are to the company, how critical they think it is, to retain you...
If you think you are important (or that the company went through a lot of efforts to get you on board), and therefore have a leverage, go and talk to the person who recruited you. Tell him that you feel cheated as what was told to you as CTC is not what the company is actually providing to you and that you feel its wrong for a company of this standing to do something like that.
Going by the ethics as well as contract / tort jurisprudence, they should give that money to you as PF only and there is no direct justification to say increase my take home salary. On the the other hand, you can always say that you dont need to give it to PF so as per your promise (on letterhead), that money rightfully should come to me as higher salary....
I know i am not giving an answer but 2 different answers, each of which are mutually exclusive. But that is what it is, and you need to decide which of the 2 paths is best for you.
From India, Mumbai
CTC is cost to company.
It includes all cost the company incurs on you. That would include lots of things that never come to you at all. Eg, money spent on training is a part of your CTC. If you are given a car, it's cost, driver salary and fuel (estimated) will be a part of your CTC.
Gross salary is your actual salary - Basic, Da, HRA, other allowances before any deduction is made. We are talking about deductions, which is money deducted from your salary, and as allowed in the Payment of Wages Act, sec 6 and 7.
In your case, deduction from gross salary would be employees contribution to pf (12%) and may be ESIC if applicalbe. However, employers contribution is not a deduction because it was never a part of your salary. In the CTC it was shows because it is additional amount spent by the company on you.
There are lot of detailed discussion in cite hr about CTC. Check them out if you have unresolved confusion.
From India, Mumbai
It includes all cost the company incurs on you. That would include lots of things that never come to you at all. Eg, money spent on training is a part of your CTC. If you are given a car, it's cost, driver salary and fuel (estimated) will be a part of your CTC.
Gross salary is your actual salary - Basic, Da, HRA, other allowances before any deduction is made. We are talking about deductions, which is money deducted from your salary, and as allowed in the Payment of Wages Act, sec 6 and 7.
In your case, deduction from gross salary would be employees contribution to pf (12%) and may be ESIC if applicalbe. However, employers contribution is not a deduction because it was never a part of your salary. In the CTC it was shows because it is additional amount spent by the company on you.
There are lot of detailed discussion in cite hr about CTC. Check them out if you have unresolved confusion.
From India, Mumbai
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SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc