Hi All ,
Can anyone help me out with the understanding of general PF deductions rules ; if we say that salary of an employee is on CTC basis than how much percentage of PF shall be deducted ?
Similarly , gratuity ; when we say that salary is on CTC basis than is it right to deduct Gratuity from the very first month of joining of a candidate ?
From India, Mumbai
2Can anyone help me out with the understanding of general PF deductions rules ; if we say that salary of an employee is on CTC basis than how much percentage of PF shall be deducted ?
Similarly , gratuity ; when we say that salary is on CTC basis than is it right to deduct Gratuity from the very first month of joining of a candidate ?
From India, Mumbai
dear pf is always deducted on basic + da at a fixed percentage
and employer also contribute at that rate as for ex
ur salary is basic 5000 da 2000 hra 2000 otherallownace 3000 incentives 4000
ur pf will deducted on rs 5000 at rate 12% ie 600
and same amount will be contributed by ur employer
so ctc will be 5000+2000+2000+3000+4000+600
16600
and employer also contribute at that rate as for ex
ur salary is basic 5000 da 2000 hra 2000 otherallownace 3000 incentives 4000
ur pf will deducted on rs 5000 at rate 12% ie 600
and same amount will be contributed by ur employer
so ctc will be 5000+2000+2000+3000+4000+600
16600
Thanks for the reply ,
But in some companies the employer says that in CTC PF rate is 24 % of basic , means both employer & employee contribution will be deducted .
Is it right to deduct both side PF ?
Regards
From India, Mumbai
But in some companies the employer says that in CTC PF rate is 24 % of basic , means both employer & employee contribution will be deducted .
Is it right to deduct both side PF ?
Regards
From India, Mumbai
CTC is the cost to company so it does not include any deductions made on behalf of the employee...like employee contribution to PF, TDS,etc. So basically to add clarity to the structure some companies mention 24% PF contributions...to avoid confusion later.
Can any one tell me hw we devide salary into the structure of basic hra da convence etc... is there any hardcore rule or we can set all these as per company’s preference....
From India, Delhi
From India, Delhi
Hi it is company specific. i am uploading one of the file available in this forum for your reference. rgds vishwanath
From India, Bangalore
From India, Bangalore
Dear Mr. Vishwanath, I study the salary sheet send by u pls. explain me wht is PT. Why u take uniform allowance Rs.1000/- & medical allowance 650/- Regards, Arti Chopra
From India, New Delhi
From India, New Delhi
professional Tax Salary Tax. Rs 5001-6000 60 6001-10000 80 10001-15000 100 15001-20000 150 20000 ABOVE 200
From India, Hyderabad
From India, Hyderabad
Dear Manasa, but i Havent Listen abot Professional Tax, In Salary Structure, is it compulsory or optional for the company.
From India, Bhopal
From India, Bhopal
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.
ESI (General PF) Rules 1995.doc
Payment of Gratuity Act, 1972 & The Rules.ppt
FORM - F (TN Payment of Gratuity Rules, 1973).xls