Dear Suhas,
Your post made me confuse. My company is CTC based company and PF deduction for all the employees is like, both the contribution (employee PF & employer PF) is deducted from employee's salary itself...
Please guide me in a way.
From India, Pune
Your post made me confuse. My company is CTC based company and PF deduction for all the employees is like, both the contribution (employee PF & employer PF) is deducted from employee's salary itself...
Please guide me in a way.
From India, Pune
Thanks Suhas, for wonderful explanation.
But some companies offers CTC which includes employer share of PF amount also. Where there wont be any further amount given to the employee apart from the CTC offered to them at the time of joining.
If that situations how do they show their payslips.
Please give your opinion on this.
Sandhya
From India, Visakhapatnam
1But some companies offers CTC which includes employer share of PF amount also. Where there wont be any further amount given to the employee apart from the CTC offered to them at the time of joining.
If that situations how do they show their payslips.
Please give your opinion on this.
Sandhya
From India, Visakhapatnam
Dear Sandhya,
As per my knowledge, if you go through company's compensation policy, then it will be easier for you to undestand the exact situation.
In most of the company when we calculate gross salary(according to Appointment Letter), employer's contribution of PF and ESI included on the compentation structure. If you deduct this PF and ESI contribution of employee, then you get exact CTC of the employee, from which you are deducting employee's PF and ESI contribution.
Regards
Dipak
From India, Bhubaneswar
As per my knowledge, if you go through company's compensation policy, then it will be easier for you to undestand the exact situation.
In most of the company when we calculate gross salary(according to Appointment Letter), employer's contribution of PF and ESI included on the compentation structure. If you deduct this PF and ESI contribution of employee, then you get exact CTC of the employee, from which you are deducting employee's PF and ESI contribution.
Regards
Dipak
From India, Bhubaneswar
Dear Sandhya,
In actual case CTC is not salary but salary is the part of CTC.
CTC is the total Expenses incurred by the company on particular employee and it includes salary, insurance premium, PF and ESIC contribution of Emplyer, house rent paid by the company, company vehicle, telephone, etc.
as company pays for Employee it becomes cost to the company. if you
are paying PF contribution of employer cosidering it as part of CTC then you can not say that you are deucting it from emplyees salary.
In atual case you are paying it from employer's pocket and not from employees and it is legal.
In pay slip employer should show Gross salary( it's Breakup: BASIC, DA, HRA, CCA, etc.)
Amount of PF deducted (only Employee's Contribution i.e. 12% of salary ( Basic+DA) maximum upto Rs. 780
Amount of ESIC deducted (only Employee's Contribution 1.75% of Gross salary (if gross salary <=15000))
Amount of PT (professional Tax) deducted
Amount of Income tax (TDS) Deducted
Net salary=(Gross salary - (all deductions(PF+ESIC+PT+ TDS)))
From India, Mumbai
In actual case CTC is not salary but salary is the part of CTC.
CTC is the total Expenses incurred by the company on particular employee and it includes salary, insurance premium, PF and ESIC contribution of Emplyer, house rent paid by the company, company vehicle, telephone, etc.
as company pays for Employee it becomes cost to the company. if you
are paying PF contribution of employer cosidering it as part of CTC then you can not say that you are deucting it from emplyees salary.
In atual case you are paying it from employer's pocket and not from employees and it is legal.
In pay slip employer should show Gross salary( it's Breakup: BASIC, DA, HRA, CCA, etc.)
Amount of PF deducted (only Employee's Contribution i.e. 12% of salary ( Basic+DA) maximum upto Rs. 780
Amount of ESIC deducted (only Employee's Contribution 1.75% of Gross salary (if gross salary <=15000))
Amount of PT (professional Tax) deducted
Amount of Income tax (TDS) Deducted
Net salary=(Gross salary - (all deductions(PF+ESIC+PT+ TDS)))
From India, Mumbai
[QUOTE=suhaskhambe;1526059]Dear Sandhya,
If any employee has withdrawan his PF from his previous company he becomes ineligible for PF in Next company.
Dear suhaskhambe,
I am not clear about the above statement, what does it mean.
Regards - anabayan
From India, Madras
If any employee has withdrawan his PF from his previous company he becomes ineligible for PF in Next company.
Dear suhaskhambe,
I am not clear about the above statement, what does it mean.
Regards - anabayan
From India, Madras
Dear Anabayan,
If any employee withdrews full amount of PF from his/ her PF account ( that is settles his/ her account) then he becomes inelligible for PF in next company.
As per PF act employee has to transfer his/ her account to next company by submitting form No. 13 and not to withdrew.
when an employee withdrews full amount from his/ her PF account government assumes that he / she will not work in any company after leaving his/ her current company.
Form No. 11 states the facts.
From India, Mumbai
If any employee withdrews full amount of PF from his/ her PF account ( that is settles his/ her account) then he becomes inelligible for PF in next company.
As per PF act employee has to transfer his/ her account to next company by submitting form No. 13 and not to withdrew.
when an employee withdrews full amount from his/ her PF account government assumes that he / she will not work in any company after leaving his/ her current company.
Form No. 11 states the facts.
From India, Mumbai
Hi Suhas,
I disagreed.
let me cleared this.
Suppose RAM (Hypothetical Name) is working in ABC company and getting 6000 rs salary, he is eligible for E.P.F and after 2 years Mr Ram switch over to another job and before joining the new company he withdrawn E.P.F, cleared all amount, accordingly his E.P.F account is closed.
When Mr. Ram joined new manufacturing house, salary have been given to him 6500 pm and he is eligible for E.P.F again and the employer responsibility to deduct employee part from his salary and share employer part.
under this condition Mr Ram will get new account number from E.P.F departments.
moreover if Mr. Ram salary is more than 10000 in new company and he has been declared for contributing in E.P.F he is also eligible.but the employer contribution is restricted to 780 Rs pm however the contribution part on this totally depend on employer decision.
From India
I disagreed.
let me cleared this.
Suppose RAM (Hypothetical Name) is working in ABC company and getting 6000 rs salary, he is eligible for E.P.F and after 2 years Mr Ram switch over to another job and before joining the new company he withdrawn E.P.F, cleared all amount, accordingly his E.P.F account is closed.
When Mr. Ram joined new manufacturing house, salary have been given to him 6500 pm and he is eligible for E.P.F again and the employer responsibility to deduct employee part from his salary and share employer part.
under this condition Mr Ram will get new account number from E.P.F departments.
moreover if Mr. Ram salary is more than 10000 in new company and he has been declared for contributing in E.P.F he is also eligible.but the employer contribution is restricted to 780 Rs pm however the contribution part on this totally depend on employer decision.
From India
Yeah its true, because i have seen people stops their PF deductions in between though they dont shift from one company to other, they simply mention in the form saying that employee has crossed the base 6,500/- hence he would like to stop or sometime they say the left the company. But after sometimes they again start deducting the PF amount where they get a new PF account.
Sandhya..
From India, Visakhapatnam
Sandhya..
From India, Visakhapatnam
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