Dear Swetha.
It all depend on employer to deduct both side pf from employee side or employer side. many company deduct employee pf from his ctc and many company (we can say a good one) deposit both share from company side and give benifit to his employee.
If a employee does not work for 6 months in a firm, he will get only pf amount, not pension amount which is 8.33%. If he complete 6 months he will get complete amount. After 60 days of resignation he can submit form 19 & 10c and withdraw his pf.
Thnx
Monu Tyagi
From India, Ambala
It all depend on employer to deduct both side pf from employee side or employer side. many company deduct employee pf from his ctc and many company (we can say a good one) deposit both share from company side and give benifit to his employee.
If a employee does not work for 6 months in a firm, he will get only pf amount, not pension amount which is 8.33%. If he complete 6 months he will get complete amount. After 60 days of resignation he can submit form 19 & 10c and withdraw his pf.
Thnx
Monu Tyagi
From India, Ambala
I am not getting into the debate of whether it is legal or illegal. In CTC concept, showing the PF contribution by the employer is actually meant for highlighting to the employee just to show the cost of engaging and the cost incurred by the employer. It may be incorrect to say as PF deduction but PF contribution which the employer is incurring on the employee. CTC has got no guidelines and it is left to the companies to include the components which are directly or indirectly beneficial to the employees including the retiral benefits. Some companies include PF Contribution, some even include Gratuity payable, some include the leave encashments, etc. No standard practice. CTC regime is beyond the limit of min. wages as I understand, probably, just to inflate the costs and present an attractive figure to the employee.
Pon
From India, Lucknow
604Pon
From India, Lucknow
Hi pon,
yes, what u hve stated is absolutely correct. Now-a-days every employer is relying on the concept of ctc. In our indian companies there are no restrictions. So, that is reason why this companies are including attendance bonus, bonus, gratuity, mediclaim, leave encashment, superannuation etc. The companies motto is to offer the employee as more as they can.
And also they try to expalins that they have exceptionally better beneficial policies. But on the other hand employee doest not understands that each & every benefit is charged from his ctc.
This sort of mind set has to change.
Regards,
vinay kumar
From India, Hyderabad
yes, what u hve stated is absolutely correct. Now-a-days every employer is relying on the concept of ctc. In our indian companies there are no restrictions. So, that is reason why this companies are including attendance bonus, bonus, gratuity, mediclaim, leave encashment, superannuation etc. The companies motto is to offer the employee as more as they can.
And also they try to expalins that they have exceptionally better beneficial policies. But on the other hand employee doest not understands that each & every benefit is charged from his ctc.
This sort of mind set has to change.
Regards,
vinay kumar
From India, Hyderabad
Dear Friends,
It is my view.
Indian Labour Law(s) doesn't recognise CTC. Every piece of Act/Law defines what is Pay,salary, wages, emoluments and what are should be/shouln't be included for every application of PF/ESI/Gratuity/Pension etc.
I really wonder how any CTC following Employer would satisfy the reqiurement. I am also interested to know from such co. how their pay rolls are drawn with CTC in their back of their mind. Notwithstanding, they should necessarily follow a minimum emoluments in the Form of Basic, DA, CCA, HRA, Conveyance Allw. Shift Allw. etc. In short either they should first fix a lump sum as a total remuneration and break into these groups or first arrive at the breakup and then consolidate to the CTC. In which case they know the break up and if so applying them for the purposes of PF etc shouldn't pose any problem. Am I correct.
Nevertheless it is the duty of every employer to show \very clearly what amount is recovered from an employee and what amount is contributed by the Estt. and on what amounts, no one could escape this requirement for the simple reason that there are minimum and maximum amounts which are interest bearing and ledger a/c of every employee should be supplied to the concerned showing monthly break up of subs, contribution, interest. If these break ups aren't available how one could regulate Loans, withdrawals, final settlements/transfers/forfeiture etc.? Am I correct.?
kumar.s.
From India, Bangalore
It is my view.
Indian Labour Law(s) doesn't recognise CTC. Every piece of Act/Law defines what is Pay,salary, wages, emoluments and what are should be/shouln't be included for every application of PF/ESI/Gratuity/Pension etc.
I really wonder how any CTC following Employer would satisfy the reqiurement. I am also interested to know from such co. how their pay rolls are drawn with CTC in their back of their mind. Notwithstanding, they should necessarily follow a minimum emoluments in the Form of Basic, DA, CCA, HRA, Conveyance Allw. Shift Allw. etc. In short either they should first fix a lump sum as a total remuneration and break into these groups or first arrive at the breakup and then consolidate to the CTC. In which case they know the break up and if so applying them for the purposes of PF etc shouldn't pose any problem. Am I correct.
Nevertheless it is the duty of every employer to show \very clearly what amount is recovered from an employee and what amount is contributed by the Estt. and on what amounts, no one could escape this requirement for the simple reason that there are minimum and maximum amounts which are interest bearing and ledger a/c of every employee should be supplied to the concerned showing monthly break up of subs, contribution, interest. If these break ups aren't available how one could regulate Loans, withdrawals, final settlements/transfers/forfeiture etc.? Am I correct.?
kumar.s.
From India, Bangalore
Dear Mr.Atul,
You are absolutely right in all your observations.
Employee has to well aware about components of CTC.
In case the breakdown of CTC given along with offer letter/appointment letter states that employers contribution of PF is part of CTC (as it invariably will state) then employers will dedcuct contributions towards PF and other obligatory contributions and then balance will be carry home pay.
Regards,
Col.Suresh Rathi
From India, Delhi
You are absolutely right in all your observations.
Employee has to well aware about components of CTC.
In case the breakdown of CTC given along with offer letter/appointment letter states that employers contribution of PF is part of CTC (as it invariably will state) then employers will dedcuct contributions towards PF and other obligatory contributions and then balance will be carry home pay.
Regards,
Col.Suresh Rathi
From India, Delhi
Dear Shweta,
For a while just forget about CTC concept.
Now try to understand what PF Act says about the contributions.
It is absolutely illegal, if employer is deducting both contributions from the monthly gross salary of employee. It shows that employer is denying to pay his contributions and it is a gross default on his side.
So, it is crystal clear thing that if there is payable gross salary of any employee concerns, whatever mode of payment may be, either monthly/daily, employee is required to pay his contributions towards PF+FPF and employer also bound to pay his share without fail, intentionally or unintentionally.
If in such case CTC concept applies, employer just adds his share against PF into the payable amount to employee for calculation purpose only, however it can not be treated as both contributions to be deducted from employee's gross salary itself.
CTC is a self explainatory term, defined by employer and not having any legal confirmations. I think it has cleared your doughts now....
Regards,
Atul S Malve
From India, Sholapur
For a while just forget about CTC concept.
Now try to understand what PF Act says about the contributions.
It is absolutely illegal, if employer is deducting both contributions from the monthly gross salary of employee. It shows that employer is denying to pay his contributions and it is a gross default on his side.
So, it is crystal clear thing that if there is payable gross salary of any employee concerns, whatever mode of payment may be, either monthly/daily, employee is required to pay his contributions towards PF+FPF and employer also bound to pay his share without fail, intentionally or unintentionally.
If in such case CTC concept applies, employer just adds his share against PF into the payable amount to employee for calculation purpose only, however it can not be treated as both contributions to be deducted from employee's gross salary itself.
CTC is a self explainatory term, defined by employer and not having any legal confirmations. I think it has cleared your doughts now....
Regards,
Atul S Malve
From India, Sholapur
Dear Swetha,
Refer to your query, the contributions for employee and employer shall not be deducted from employee salary by the employer. In the mode of CTC pattern the employer can show the part of employer contribution.
Regards
V R RAO PULIPAKA
From India, Bangalore
Refer to your query, the contributions for employee and employer shall not be deducted from employee salary by the employer. In the mode of CTC pattern the employer can show the part of employer contribution.
Regards
V R RAO PULIPAKA
From India, Bangalore
Dear Swetha,
I agree with Atul,
The statement you are making in your last post "I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary" is little confusing.
Basically if PF is deducted from employee i.e 12% same ratio is contributed by employer along with administrative and EDLI charges.
Just to add it is also optional to deduct PF, so if any employee does not wants to contribute for PF, we as HR must consider the same.
regards
Tanuja
From India, Pune
I agree with Atul,
The statement you are making in your last post "I got a clarification that it is legal to deduct both employee & employer contribution for PF from Employee salary" is little confusing.
Basically if PF is deducted from employee i.e 12% same ratio is contributed by employer along with administrative and EDLI charges.
Just to add it is also optional to deduct PF, so if any employee does not wants to contribute for PF, we as HR must consider the same.
regards
Tanuja
From India, Pune
It is right that employer cotribution of PF to duduct with employee salary if employer show your CTC.Because in ctc we add all amount
From India, Delhi
From India, Delhi
Dear Swetha,
So far your question is concern regarding deduction of employer's share form the salary of an employee, the practice is to be said malpractice by both moral as well legal way. i agree with the statements of NITIN AND ATUL MALVE. If an employee is getting fair salary and hence allow employer to deduct employer share from the salary as a part of SO CALLED CTC then only it can be considered.
Regards,
KIRAN KALE
From India, Kolhapur
So far your question is concern regarding deduction of employer's share form the salary of an employee, the practice is to be said malpractice by both moral as well legal way. i agree with the statements of NITIN AND ATUL MALVE. If an employee is getting fair salary and hence allow employer to deduct employer share from the salary as a part of SO CALLED CTC then only it can be considered.
Regards,
KIRAN KALE
From India, Kolhapur
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Employer-PF-res trict to wages of Rs 6500.pdf