Dear Bhaskar,
Very well explained.
I wish to add few finer points here-
-The VPF contribution can be extended upto 100% of your basic.
-It would be very opt to start VPF in the new contributory period ie March paid in April.
-The % of Govt contribution to EPS Corpus fund is 1.16% of the wages.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Coimbatore
54Very well explained.
I wish to add few finer points here-
-The VPF contribution can be extended upto 100% of your basic.
-It would be very opt to start VPF in the new contributory period ie March paid in April.
-The % of Govt contribution to EPS Corpus fund is 1.16% of the wages.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Coimbatore
Dear Sumit kumar,
Thank you for detail explanation
The employer contribution of PF is deducted from the actual CTC offered by the company and then salary breakup is given to the employees and in that salary break up again their is employee deduction which is must and ESI deduction plus Insurance deduction etc. were the take home or net pay is very less amount. how to avoid this loss from employee side.
pls advise me.
regards,
abrahamdeepa
From India, Madras
Thank you for detail explanation
The employer contribution of PF is deducted from the actual CTC offered by the company and then salary breakup is given to the employees and in that salary break up again their is employee deduction which is must and ESI deduction plus Insurance deduction etc. were the take home or net pay is very less amount. how to avoid this loss from employee side.
pls advise me.
regards,
abrahamdeepa
From India, Madras
Dear Deepa, As the deduction for PF and ESI are mandatory, It is upto you to negotiate with your employer for a suitable CTC to nullify the deduction. S.Sethupathy, Excellent HR Services, Erode.
From India, Coimbatore
From India, Coimbatore
Dear Mr.Sethupathy,
I agree and understand the deduction of PF and ESI are good and Mandatory but why employer should touch the employee ctc for employer PF deduction and they can pay the standard amount rs.780 to all level of staff with their own company expenses with interest to give the benefits to the employees.
If this is applicable or not. Else any guide line.
regards
abrahamdeepa
From India, Madras
I agree and understand the deduction of PF and ESI are good and Mandatory but why employer should touch the employee ctc for employer PF deduction and they can pay the standard amount rs.780 to all level of staff with their own company expenses with interest to give the benefits to the employees.
If this is applicable or not. Else any guide line.
regards
abrahamdeepa
From India, Madras
Dear Deepa
Please try to understand the difference between CTC (Cost to Company), Gross Pay and Nett Pay(Hand taking salary). The Company is deducting from the CTC because the CTC is the complete package spend on you by the company. In Rude Language you have sold you to the company your 8 hours per day for the rate of CTC. The Gross Salary will be having the deduction of 12% PF, 1.75% ESI. Whereas in CTC 12% Employee PF, 13.61% Employer PF, 1.75% Employee ESI, 4.75% Employer ESI altogether.
While Fixing the compensation package you could have made it clear about what will be your hand taking salary. Now on completion of your Probation Period you can demand /claim about your revision.
All the best
From India, Kumbakonam
Please try to understand the difference between CTC (Cost to Company), Gross Pay and Nett Pay(Hand taking salary). The Company is deducting from the CTC because the CTC is the complete package spend on you by the company. In Rude Language you have sold you to the company your 8 hours per day for the rate of CTC. The Gross Salary will be having the deduction of 12% PF, 1.75% ESI. Whereas in CTC 12% Employee PF, 13.61% Employer PF, 1.75% Employee ESI, 4.75% Employer ESI altogether.
While Fixing the compensation package you could have made it clear about what will be your hand taking salary. Now on completion of your Probation Period you can demand /claim about your revision.
All the best
From India, Kumbakonam
Dear Deepa,
As you aware, CTC is stands for COST TO THE COMPANY.
Then all the expenses incurred towards that particular employment are to be booked/added to this CTC calculation.
This is a basic criteria, which leads upto working out the cost of the materials produced (Labour Cost) etc.,
I know few companies, whom contribute both the shares to boost the employee's morale.
But in general CTC are calculated out with all components like ESI, PF, Gratuity Contribution to arrive actual expenses.
S.Sethupathy,
Erode.
From India, Coimbatore
As you aware, CTC is stands for COST TO THE COMPANY.
Then all the expenses incurred towards that particular employment are to be booked/added to this CTC calculation.
This is a basic criteria, which leads upto working out the cost of the materials produced (Labour Cost) etc.,
I know few companies, whom contribute both the shares to boost the employee's morale.
But in general CTC are calculated out with all components like ESI, PF, Gratuity Contribution to arrive actual expenses.
S.Sethupathy,
Erode.
From India, Coimbatore
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PF Advance rule.doc
SALARY with out PF Deduction.xls