Our company doesn't contribute its share towards the PF; rather, it deducts the same from our salary and shows it as the employer's contribution. So, I contribute both parts from my salary. When questioned, they said that it's there in our offer letter. Please guide me on what to do.
From India, Gandhinagar
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From India, Gandhinagar
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Hi,
Before bringing you on board, your employer might have informed you that the fixed salary is CTC. There is nothing wrong with that. You would have discussed this with the recruiting person. However, it is very clear that there is nothing wrong in your case.
Hrkpati
From India, Guwahati
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13Before bringing you on board, your employer might have informed you that the fixed salary is CTC. There is nothing wrong with that. You would have discussed this with the recruiting person. However, it is very clear that there is nothing wrong in your case.
Hrkpati
From India, Guwahati
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The employer should not deduct the employer share of PF (13.61%) for employees. It is a criminal offense under the act. You may take this to the PF authorities.
From India, Madras
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From India, Madras
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Dear JKMC,
How could it be wrong? In a payslip, the gross salary will be shown after adjusting the employer's contribution. See this: If the CTC is Rs. 10,000/-, the employer will offer you a salary of Rs. 9,220/- (This will be communicated to the new employee at the time of entry).
Then the payslip will show:
Gross Salary: Rs. 9,220.00
Less PF Employee: Rs. 780.00
--------------------------
Net Pay: Rs. 8,540.00
CTC is an internal matter between the employer and the new employee for budgeting purposes. Where is the criminality in this? It is simply an agreement. If anyone challenges this and files a lawsuit, please contact me at
.
Dear JKMC, your response will surely correct me, please provide your arguments on this.
Hrkpati
From India, Guwahati
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How could it be wrong? In a payslip, the gross salary will be shown after adjusting the employer's contribution. See this: If the CTC is Rs. 10,000/-, the employer will offer you a salary of Rs. 9,220/- (This will be communicated to the new employee at the time of entry).
Then the payslip will show:
Gross Salary: Rs. 9,220.00
Less PF Employee: Rs. 780.00
--------------------------
Net Pay: Rs. 8,540.00
CTC is an internal matter between the employer and the new employee for budgeting purposes. Where is the criminality in this? It is simply an agreement. If anyone challenges this and files a lawsuit, please contact me at
Dear JKMC, your response will surely correct me, please provide your arguments on this.
Hrkpati
From India, Guwahati
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Hi All,
I agree with @Hrkpati. There are two methods that are usually followed by employers:
1. Employer tells you only what your monthly salary is, i.e., your gross salary.
2. Another one is the most popular method among employers, where they calculate all expenses that they pay for you and against you, showing that this is your CTC. For example, if your salary is Rs. 15000, then your CTC will be around Rs. 16790.00. How?
- Salary: Rs. 15000.00
- Employer PF Contribution @12% on basic (i.e., 60% of your gross salary) is Rs. 1080.00
- Employer ESIC Contribution @4.75% of your gross salary is Rs. 712.5
Now, 15000 + 1080 + 712.5 = Rs. 16792.00
In that case, your cash in hand range is Rs. 13652 after the deduction of PF and ESIC contributions at the employee's part. So always take a look before joining or accepting an offer letter to see whether they are asking for your CTC or your salary.
Thanks
From India, Jaipur
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I agree with @Hrkpati. There are two methods that are usually followed by employers:
1. Employer tells you only what your monthly salary is, i.e., your gross salary.
2. Another one is the most popular method among employers, where they calculate all expenses that they pay for you and against you, showing that this is your CTC. For example, if your salary is Rs. 15000, then your CTC will be around Rs. 16790.00. How?
- Salary: Rs. 15000.00
- Employer PF Contribution @12% on basic (i.e., 60% of your gross salary) is Rs. 1080.00
- Employer ESIC Contribution @4.75% of your gross salary is Rs. 712.5
Now, 15000 + 1080 + 712.5 = Rs. 16792.00
In that case, your cash in hand range is Rs. 13652 after the deduction of PF and ESIC contributions at the employee's part. So always take a look before joining or accepting an offer letter to see whether they are asking for your CTC or your salary.
Thanks
From India, Jaipur
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