Hi All
This is Ruchi. I am Handling HR Executive position in a small IT company where 60 employees are working. I need input on this: that our Employer wants to deduct PF from this month, but as per the rule the employer and employee contribution is 12 - 12 %, but he is deducting all 24% from Employees Salary, stating that the CTC what they have offered is Total Cost To the company, so whatever deductions they have to do will be from salary, But all employees are unhappy, they are demanding 12% from their salary and 12% from employer.Please help me, how I can support them.
Because at the time we had given offer to them we have stated that there will be no deduction from salary apart from PT.
I would appreciate your immediate response.
Thanks & Regards
Ruchi Sharma
From India, Bangalore
This is Ruchi. I am Handling HR Executive position in a small IT company where 60 employees are working. I need input on this: that our Employer wants to deduct PF from this month, but as per the rule the employer and employee contribution is 12 - 12 %, but he is deducting all 24% from Employees Salary, stating that the CTC what they have offered is Total Cost To the company, so whatever deductions they have to do will be from salary, But all employees are unhappy, they are demanding 12% from their salary and 12% from employer.Please help me, how I can support them.
Because at the time we had given offer to them we have stated that there will be no deduction from salary apart from PT.
I would appreciate your immediate response.
Thanks & Regards
Ruchi Sharma
From India, Bangalore
Dear Ms. Ruchi,
first of all you have to clear the idea of CTC, Gross Salary, Net salary.
CTC contains all the deductions within itself, both from employer and employee.
Gross contains deductions from employee only.
net salary means "in hand salary" after all deductions.
You tell to your all the employees that whatever the amount they have offered it was their CTC, not their Gross of Net Pay.
From India, Kolkata
15first of all you have to clear the idea of CTC, Gross Salary, Net salary.
CTC contains all the deductions within itself, both from employer and employee.
Gross contains deductions from employee only.
net salary means "in hand salary" after all deductions.
You tell to your all the employees that whatever the amount they have offered it was their CTC, not their Gross of Net Pay.
From India, Kolkata
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls