HR Gems:
Can anybody through some light on PF contribution
is there any clause which says (12%+12%) 24% of the contribution can be deducted from the employee alone? then i believe there is no meaning having PF contribution - comments please
can we deduct the Medical Insurance Premium amount from the employees Salary?
As far as i know i believe we cant do these two things as per the law... what all of you say - give me your inputs
if at all we have to play gimmix then what i understand is we can add these compenents in the employees CTC as the additional benefits from the employer - am i on the right track
Thanks for your time
- Mirza
From Saudi Arabia, Jiddah
18Can anybody through some light on PF contribution
is there any clause which says (12%+12%) 24% of the contribution can be deducted from the employee alone? then i believe there is no meaning having PF contribution - comments please
can we deduct the Medical Insurance Premium amount from the employees Salary?
As far as i know i believe we cant do these two things as per the law... what all of you say - give me your inputs
if at all we have to play gimmix then what i understand is we can add these compenents in the employees CTC as the additional benefits from the employer - am i on the right track
Thanks for your time
- Mirza
From Saudi Arabia, Jiddah
Dear Mirza,
The employees are entitled to pay 12% of their basic salary to the PF...
Whereas employer is also required to pay the same amount and deposit it with the PF..
But employer is not suppose to cut the same from the employees salary.. but yes the employer's contribution would remain added in the CTC of an employee..
Regarding Medical Insurance Benefits, these are extra benefits being provided by the employers but they include that amount also while preparing CTC.. as CTC means Cost to Company.. i.e whats exactly the employer is bearing while employing you will come under CTC..
Hope it must have solved ur queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
The employees are entitled to pay 12% of their basic salary to the PF...
Whereas employer is also required to pay the same amount and deposit it with the PF..
But employer is not suppose to cut the same from the employees salary.. but yes the employer's contribution would remain added in the CTC of an employee..
Regarding Medical Insurance Benefits, these are extra benefits being provided by the employers but they include that amount also while preparing CTC.. as CTC means Cost to Company.. i.e whats exactly the employer is bearing while employing you will come under CTC..
Hope it must have solved ur queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Amit:
Thanks for your inputs and i was well aware of these things but to make 200% sure of myself, i have posted this query....
say for eg: one's salary is 4 la p/a and if i include the Medicliam, PF contribution and other additional components then the CTC would vary...isnt it; it means that for the mployee his CTC would be 4 la p/a only but whereas for the employer it differs because all these compenents get added to it - please clarify
Thanks a Ton for your time :)
- Mirza
From Saudi Arabia, Jiddah
Thanks for your inputs and i was well aware of these things but to make 200% sure of myself, i have posted this query....
say for eg: one's salary is 4 la p/a and if i include the Medicliam, PF contribution and other additional components then the CTC would vary...isnt it; it means that for the mployee his CTC would be 4 la p/a only but whereas for the employer it differs because all these compenents get added to it - please clarify
Thanks a Ton for your time :)
- Mirza
From Saudi Arabia, Jiddah
Dear Mirza, Yes, the CTC will include all these variable components also.. and it would be reflected in one’s CTC also.. which been given from company end.. Regards, Amit Seth.
From India, Ahmadabad
From India, Ahmadabad
Dear Mirza, Greetings! I have attached an word document, which gives u information on PF Contribution. Rgds, John N
From India, Madras
From India, Madras
Dear Mirza,
As you know,CTC term is different from Gross Salary. Cost to Company includes every expenses(including Gross Salary) on particular employee which is being done by the Company. It may include Employer PF Contribution (it can be 12% or 13.61%), premium amount of Health Insurance, employer's ESI Contribution (4.75%) etc. But when we talk about only salary then employer is not allowed to deduct own contribution from employee salary. Gross salary includes only Basic , D.A. and other allowance paid to employee. Employers contribution should be included in Salary.
Thanks,
Anuj
From India, Lucknow
As you know,CTC term is different from Gross Salary. Cost to Company includes every expenses(including Gross Salary) on particular employee which is being done by the Company. It may include Employer PF Contribution (it can be 12% or 13.61%), premium amount of Health Insurance, employer's ESI Contribution (4.75%) etc. But when we talk about only salary then employer is not allowed to deduct own contribution from employee salary. Gross salary includes only Basic , D.A. and other allowance paid to employee. Employers contribution should be included in Salary.
Thanks,
Anuj
From India, Lucknow
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
Calcu. pf Emp.eps.epf sample sheet for HR site..xls