Respected Seniors,
I am working in Manufacturing unit.My company deduct pf12% and ESI to all employees but now they just started to cut PF 24%, bonus16% esi of new employees. so my question... Is my company entitle to do this deduction without any written documents from PF office or convert its salary structure without any notice from any office.
kindly help me by explaining about CTC
Thanks & regards,
From India, Ambala
7I am working in Manufacturing unit.My company deduct pf12% and ESI to all employees but now they just started to cut PF 24%, bonus16% esi of new employees. so my question... Is my company entitle to do this deduction without any written documents from PF office or convert its salary structure without any notice from any office.
kindly help me by explaining about CTC
Thanks & regards,
From India, Ambala
Dear Mr. Atul,
How can a company change its salary structure?
As per statutory compliance..my company is already registered in PF and deducted 12% pf of all employees but now it started deduct 24%pf from new joined employee's salary. Is this as per law? Kindly pindown.
Thanks & regards,
From India, Ambala
How can a company change its salary structure?
As per statutory compliance..my company is already registered in PF and deducted 12% pf of all employees but now it started deduct 24%pf from new joined employee's salary. Is this as per law? Kindly pindown.
Thanks & regards,
From India, Ambala
Dear Heena,
Please understand the difference between Nett Pay, Gross Pay and CTC.
Nett Pay means whatever you are getting in your hand otherwise known as Hometake salary
Gross Pay means whatever shown in your payslip before deducting the PF 12% and ESI 1.75% Income Tax, any Salary Savings Insurance scheme. etc.
CTC Means the company spends on you everything will be added, like Employer PF (12%) , Employer ESI (4.75%), All perquisites and whatever you get in kind (Like accommodation, Canteen Lunch/Tea/Snacks subsidy, Conveyance Vehicle, Uniforms or Factory Suits Provided etc.).
Always you must confirm the same from your Offer of employment issued to you by the company for real clarification, whatever they mention about the compensation package in your offer letter as CTC or Gross or Nett Pay.
From India, Kumbakonam
Please understand the difference between Nett Pay, Gross Pay and CTC.
Nett Pay means whatever you are getting in your hand otherwise known as Hometake salary
Gross Pay means whatever shown in your payslip before deducting the PF 12% and ESI 1.75% Income Tax, any Salary Savings Insurance scheme. etc.
CTC Means the company spends on you everything will be added, like Employer PF (12%) , Employer ESI (4.75%), All perquisites and whatever you get in kind (Like accommodation, Canteen Lunch/Tea/Snacks subsidy, Conveyance Vehicle, Uniforms or Factory Suits Provided etc.).
Always you must confirm the same from your Offer of employment issued to you by the company for real clarification, whatever they mention about the compensation package in your offer letter as CTC or Gross or Nett Pay.
From India, Kumbakonam
Thanks for your valuable reply but my question is...Can my company deduct pf 24% from new employees salary and doesn't want to contribute from employer side as it's deducted pf12% from old employees.
If yes so is there any approval need from any PF office.
Thanks & regards,
From India, Ambala
If yes so is there any approval need from any PF office.
Thanks & regards,
From India, Ambala
Not required to take consent of the employees as such as the amount is being deducted & put in the pf ac. Employers are known to do that as best practices.
From India, Indore
From India, Indore
As per EPF Act the deduction of 12% of the employee and employer are two diff things. Also the employer has to pay 1.61% as Admin charges on A/c 10 & A/c 22. So I fail to understand if it is a CTC thing then why are they not putting in this cost.
As per law it is illegal to deduct employer contribution from the employee share.
You can complain to the RPFC with your appointment letter where the Gross salary is mentioned.
From India, Mumbai
As per law it is illegal to deduct employer contribution from the employee share.
You can complain to the RPFC with your appointment letter where the Gross salary is mentioned.
From India, Mumbai
Hello Heena,
All our colleague have explained you i.e. both side (employers & employees) of Pf is part of CTC which is correct but as you mentioned, your organization is also going to deduct bonus of 16% which is doubtful. Please check the deduction percentage of bonus amount because as per applicable bonus act, no organization can deduct bonus more than 8.33% on basic + DA.
Regards,
Dnyaneshwar
From India, Pune
All our colleague have explained you i.e. both side (employers & employees) of Pf is part of CTC which is correct but as you mentioned, your organization is also going to deduct bonus of 16% which is doubtful. Please check the deduction percentage of bonus amount because as per applicable bonus act, no organization can deduct bonus more than 8.33% on basic + DA.
Regards,
Dnyaneshwar
From India, Pune
Hello Anuradha,
CTC means cost to company which has given employees including his individual direct (All payable allowances) & indirect compensation ( Deduction allowances like PF, Bonus, LTA, ESI, Etc). As per PF act admin charges of 1.61% is not part of individual compensation, it is service charges related expenses which has to bear employer only. that is why no organization have right to deduct admin charges from employees salary.
Regards,
Dnyaneshwar
From India, Pune
CTC means cost to company which has given employees including his individual direct (All payable allowances) & indirect compensation ( Deduction allowances like PF, Bonus, LTA, ESI, Etc). As per PF act admin charges of 1.61% is not part of individual compensation, it is service charges related expenses which has to bear employer only. that is why no organization have right to deduct admin charges from employees salary.
Regards,
Dnyaneshwar
From India, Pune
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