don’t waste ur time for this common qus. it is well known that deduction of PF always beneficial for the employees.
From India, Delhi
From India, Delhi
CTC- Cost to company and if any company is deducting double PF then it isn’t wrong...
From India, Delhi
From India, Delhi
Can you please explain how the employee's share of contribution to PF is a cost to the Company?
The total amount paid by the Company towards PF includes my own contribution which is my money and which is recovered from my salary each month.
How can you say that this total amount is a Cost to the Co. When I receive the PF dues, part of it is my own money. How can this be a Cost to the Co. when my own money is being returned to me.
Incidentally, I have not talked about take home pay at all in my response.
Best Wishes,
Vasant Nair
From India, Mumbai
90The total amount paid by the Company towards PF includes my own contribution which is my money and which is recovered from my salary each month.
How can you say that this total amount is a Cost to the Co. When I receive the PF dues, part of it is my own money. How can this be a Cost to the Co. when my own money is being returned to me.
Incidentally, I have not talked about take home pay at all in my response.
Best Wishes,
Vasant Nair
From India, Mumbai
Dear
Mostly companies in India include PF-Employer Contribution in CTC and in my view, it is correct because when we talk about CTC, it means complete COST TO COMPANY for an employee.
So, it is ok if any company takes Employer's contribution of PF into calculation of CTC.
Regards
Amit Singhal
From India, Delhi
Mostly companies in India include PF-Employer Contribution in CTC and in my view, it is correct because when we talk about CTC, it means complete COST TO COMPANY for an employee.
So, it is ok if any company takes Employer's contribution of PF into calculation of CTC.
Regards
Amit Singhal
From India, Delhi
Dear all.
The wage for employee is his gross pay and not CTC.
From gross pay organisation will deduct employee contribution and pay balance net pay to employee.
CTC is the total cost employer incurring to have an employee. Here Gross pay + Employer contribution of PF & admin charges (13.61%)+ Gratuity+ Superannuation etc. are added. So employees contribution for PF is not added into CTC.
Regards,
Mohanan
From India
The wage for employee is his gross pay and not CTC.
From gross pay organisation will deduct employee contribution and pay balance net pay to employee.
CTC is the total cost employer incurring to have an employee. Here Gross pay + Employer contribution of PF & admin charges (13.61%)+ Gratuity+ Superannuation etc. are added. So employees contribution for PF is not added into CTC.
Regards,
Mohanan
From India
Hello everyone
we deduct 12% of BS and if the employees will be absent, their salaries are deducted and hence BS becomes less every month and the PF contribution is changing every month.
our company also want to apply the same rule and want to deduct the double pf from ctc i.e both the employee and employer contribution, then how the pf should be deducted i.e either some fixed amount of PF should be deducted every month (including both contributions) or 24% of basic salary every month.
Plz reply
thanks and regards
Meenu
From India, Delhi
we deduct 12% of BS and if the employees will be absent, their salaries are deducted and hence BS becomes less every month and the PF contribution is changing every month.
our company also want to apply the same rule and want to deduct the double pf from ctc i.e both the employee and employer contribution, then how the pf should be deducted i.e either some fixed amount of PF should be deducted every month (including both contributions) or 24% of basic salary every month.
Plz reply
thanks and regards
Meenu
From India, Delhi
[Dear Vasant
Say you would not have joined the company - do you think that company would have still spend that amount? So on employing you - company has to pay that is the COST TO COMPANY for employing you.
Mohanan has given good explanation.
I hope it is clear - still if you have confusion please approach your HR head and he would explain you in details.
Best Regards
Neeraj4all]Can you please explain how the employee's share of contribution to PF is a cost to the Company?
The total amount paid by the Company towards PF includes my own contribution which is my money and which is recovered from my salary each month.
How can you say that this total amount is a Cost to the Co. When I receive the PF dues, part of it is my own money. How can this be a Cost to the Co. when my own money is being returned to me.
Incidentally, I have not talked about take home pay at all in my response.
Best Wishes,
Vasant Nair[/QUOTE]
From India, Mumbai
Say you would not have joined the company - do you think that company would have still spend that amount? So on employing you - company has to pay that is the COST TO COMPANY for employing you.
Mohanan has given good explanation.
I hope it is clear - still if you have confusion please approach your HR head and he would explain you in details.
Best Regards
Neeraj4all]Can you please explain how the employee's share of contribution to PF is a cost to the Company?
The total amount paid by the Company towards PF includes my own contribution which is my money and which is recovered from my salary each month.
How can you say that this total amount is a Cost to the Co. When I receive the PF dues, part of it is my own money. How can this be a Cost to the Co. when my own money is being returned to me.
Incidentally, I have not talked about take home pay at all in my response.
Best Wishes,
Vasant Nair[/QUOTE]
From India, Mumbai
Dear all ok at the same time canteen, transport, unform,personal safty helmate, shoe,apron this all items are cost of the company. why this expancess not included CTC?
From India, Madras
From India, Madras
Son, I have spent 30 years' plus in the HR stream. Please read what Mohanan has stated carefully and then maybe you will have a revised opinion on the matter at hand. Vasant Nair
From India, Mumbai
From India, Mumbai
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.
CTC Calculator.xls