Dear All,
I have seen a couple of MNC companies in Bangalore who show the Employer contribution to PF as part of Gross salary. As far as my knowledge goes this is not allowed. Please advise how such large corporations can do this?
Regards
Praveen
From India
11I have seen a couple of MNC companies in Bangalore who show the Employer contribution to PF as part of Gross salary. As far as my knowledge goes this is not allowed. Please advise how such large corporations can do this?
Regards
Praveen
From India
A typical salary slip says earnings and decductions Do they show this as earnings and then deduct?? I think if we can have a look at the slip, then we can comment Siva
From India, Chennai
From India, Chennai
Dear Praveen,
Yes, actually CTC means total cost which employer spends on an employee, directly or indirectly.. it includes the PF contribution from employer side as well...
If its been added in your gross salary.. then it must be discussed prior.
You must been asked of your take home salary.. if it is same then there may be they have that kind of structure following with them..
Regards,
Amit Seth.
From India, Ahmadabad
Yes, actually CTC means total cost which employer spends on an employee, directly or indirectly.. it includes the PF contribution from employer side as well...
If its been added in your gross salary.. then it must be discussed prior.
You must been asked of your take home salary.. if it is same then there may be they have that kind of structure following with them..
Regards,
Amit Seth.
From India, Ahmadabad
Amit,
My posting refers to GROSS Salary. In the gross salary of the payslip the company has added the Employer contribution of PF and then again shown the same as deduction in the next column.
This as far as my knowledge goes is not fair. How is it that Big companies do this and get away with it?
From India
My posting refers to GROSS Salary. In the gross salary of the payslip the company has added the Employer contribution of PF and then again shown the same as deduction in the next column.
This as far as my knowledge goes is not fair. How is it that Big companies do this and get away with it?
From India
To the best of my knowledge, employer's contribution to PF is to be shown in the CTC, and not in the Gross.
I agree with Praveen that there appears to be something strange. I also agree with others commenting, that if a copy of the payslip can be posted, we may be better able to understand the logic used.
Jeroo
From India, Mumbai
I agree with Praveen that there appears to be something strange. I also agree with others commenting, that if a copy of the payslip can be posted, we may be better able to understand the logic used.
Jeroo
From India, Mumbai
PF contribution of employer should be part of CTC and not part of Gross salary. Gross salary is that part of salary that is paid on a monthly basis to the employee. Hence, if the employer is adding Employer contribution of PF in the pay slip, this is definetley not normal. However, there is no legal definition for Gross salary for the purpose of issuing a pay slip. Hence, there may not be sufficient legal ground to find a platform for discussion with the MNC. Nevertheless, the company rules are an indication for such definitions and obviously the company rules would probably include this as part of Gross salary.
From India, Hyderabad
From India, Hyderabad
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Gross Salary(1).xls