Just want one clarification...:??
is CTC means that employer's contribution for PF/ESI is also deducted in the said CTC or Should Employer pay separately from company accounts??
please give some suggestion on the same..? since i hav come cross one company where PF/ESI contribution of employer's is been deducted from employee's salary? i.e from employees CTC.
Regards
Yohan
From India, Mangaluru
2is CTC means that employer's contribution for PF/ESI is also deducted in the said CTC or Should Employer pay separately from company accounts??
please give some suggestion on the same..? since i hav come cross one company where PF/ESI contribution of employer's is been deducted from employee's salary? i.e from employees CTC.
Regards
Yohan
From India, Mangaluru
Dear Yohan,
The term CTC means Cost-to-Company.It varies from Company to Company based on their predefined salary structure.As per your query whether CTC means that employer's contribution for PF/ESI is also deducted in the said CTC or Should Employer pay separately from company accounts, the answer is an employee should contribute 12% of his basic salary from his earning and Employer will also contribute 12% of that from his accounts.
Let me explain first-
Basic- 10000
HRA- 4000
Medical Allowance- 550
Spl.Allowance- 1450
Conv.Allowance- 4000
-----------------------
Monthly Gross- 20000
-----------------------
PF- 1200
Bonus(Min)- 833
Gratuity- 481
........
........
-------------------------
Monthly CTC- 22514
------------------------
Yearly CTC- 270168
------------------------
Your deduction should be Monthly Gross-Your PF Contribution-P.Tax-(TDS based on annual income)
20000-1200-130(Vary sate wise)-(let TDS=0)
Then your net pay=Rs.18670/-
From India, Calcutta
The term CTC means Cost-to-Company.It varies from Company to Company based on their predefined salary structure.As per your query whether CTC means that employer's contribution for PF/ESI is also deducted in the said CTC or Should Employer pay separately from company accounts, the answer is an employee should contribute 12% of his basic salary from his earning and Employer will also contribute 12% of that from his accounts.
Let me explain first-
Basic- 10000
HRA- 4000
Medical Allowance- 550
Spl.Allowance- 1450
Conv.Allowance- 4000
-----------------------
Monthly Gross- 20000
-----------------------
PF- 1200
Bonus(Min)- 833
Gratuity- 481
........
........
-------------------------
Monthly CTC- 22514
------------------------
Yearly CTC- 270168
------------------------
Your deduction should be Monthly Gross-Your PF Contribution-P.Tax-(TDS based on annual income)
20000-1200-130(Vary sate wise)-(let TDS=0)
Then your net pay=Rs.18670/-
From India, Calcutta
Thanks Rahaman But i have seen one offer letter where the employer has shown the deduction of PF contribution from employee’s salary..!! is it legally right to do that??
From India, Mangaluru
From India, Mangaluru
Dear friend It is legally wrong. They should not recover the Employer contribution from the salary of the Employee. The Employer has to bear the employer contribution. Regards alphonse
From India, Madras
From India, Madras
see if the company is offering Gross salary then the employer's contribution is borne by the company.
However, if company offers CTC then the employer's contribution is part of the CTC offered to the employee
From India, New Delhi
However, if company offers CTC then the employer's contribution is part of the CTC offered to the employee
From India, New Delhi
I do agree with alphonse.It is not a legal or ethical for an employer to recover the employer contribution from the salary of employee.
Please note though you can contribute twice the PF (24%)from your salary as per approval of management but the employer contribution should stick 12% or more as per the discretion of management.
A.Rahaman
HRD
From India, Calcutta
Please note though you can contribute twice the PF (24%)from your salary as per approval of management but the employer contribution should stick 12% or more as per the discretion of management.
A.Rahaman
HRD
From India, Calcutta
Hello,
I do agree with Neha. In my company, we are offering CTC (cost to company). It means, both contributions will be born by employee.
There is no legal issue in this as salary structure is designed as per company policy.
Suvarna
From India, Pune
I do agree with Neha. In my company, we are offering CTC (cost to company). It means, both contributions will be born by employee.
There is no legal issue in this as salary structure is designed as per company policy.
Suvarna
From India, Pune
Dear Yohan
As per my knowledge and experience CTC itself says tht Cost to the Company, it includes every rupee spend by the company on an employee. It includes all the contributions from employee and employer. CTC clearly means
Net+Employee contributions=Gross
Gross+Employer Contributions=CTC.
Regards,
Mallik
From India, Hyderabad
As per my knowledge and experience CTC itself says tht Cost to the Company, it includes every rupee spend by the company on an employee. It includes all the contributions from employee and employer. CTC clearly means
Net+Employee contributions=Gross
Gross+Employer Contributions=CTC.
Regards,
Mallik
From India, Hyderabad
As CTC means Cost to the Company. The company wont pay a rupee extra than the agreed CTC. All the Contributions are included in it.
From India, Lucknow
From India, Lucknow
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