Dear Sandeep,
CTC design two ways:
1. CTC is known as gross salary.
2. Gross salary is known as CTC.
Now the thing is, in which way you are designing the CTC, in both cases, the basic component will differ. In the first case, it must be considered that 40% of CTC is the basic component. In the last case, it will be 45% of the gross salary as the basic component.
From India, Mumbai
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5CTC design two ways:
1. CTC is known as gross salary.
2. Gross salary is known as CTC.
Now the thing is, in which way you are designing the CTC, in both cases, the basic component will differ. In the first case, it must be considered that 40% of CTC is the basic component. In the last case, it will be 45% of the gross salary as the basic component.
From India, Mumbai
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I don't know how people attain professional degrees without acquiring the required knowledge in the particular subject. Nothing harsh on anyone, however, my personal feeling is that people should receive a fairly comprehensive onboard training on the job to make them familiar with the crux, systems, policies, and procedures.
From India, Indore
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From India, Indore
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Hello Sujata,
First, understand that there are two ways of contributing towards EPF. One is the employee's contribution, and the other is the employer's contribution. Again, there are a few employees who fall under the mandatory contribution slab, and others fall under optional. Depending on your company policy, you can make it mandatory for all employees, taking into consideration that their net pay is not affected or their benefit towards enrolling in EPF. For example, an employee at the age of 56 who has never enrolled in EPF will not benefit if you try to enroll him at this age. So, study your employees' needs properly before making it mandatory for everyone.
Coming back to contributions, EPF is mandatory for those whose basic salary component is <=15000 per month. The employee's contribution is 12% of the basic salary. For example, if an employee draws a basic salary of 7000, Rs. 840 will be deducted from his gross pay towards EPF. Also, note that the ceiling limit for EPF calculation remains Rs. 15000 as basic pay. For better understanding, consider an employee whose basic pay is 20000 per month. If they have voluntarily opted for EPF, their EPF contribution will be calculated based on a basic pay of Rs. 15000, as this forms the ceiling amount. The deducted amount would be Rs. 1800 (which is 12% of 15000). Depending on the company policy, you can raise this ceiling to the actual basic pay of an employee, but it's not mandatory.
Now, for the employer's contribution:
The employer contributes 13.61% of the basic pay towards EPF. This 13.61% is divided as follows:
- 8.33% towards EPS (Employee Pension Scheme)
- 3.67% towards EPF (Employee Provident Fund)
- 1.10% for admin charges of PF
- 0.5% towards EDLIS (Employee Deposit Linked Insurance Scheme)
- 0.01% towards EDLI admin charges.
Thanks.
From India, Mumbai
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First, understand that there are two ways of contributing towards EPF. One is the employee's contribution, and the other is the employer's contribution. Again, there are a few employees who fall under the mandatory contribution slab, and others fall under optional. Depending on your company policy, you can make it mandatory for all employees, taking into consideration that their net pay is not affected or their benefit towards enrolling in EPF. For example, an employee at the age of 56 who has never enrolled in EPF will not benefit if you try to enroll him at this age. So, study your employees' needs properly before making it mandatory for everyone.
Coming back to contributions, EPF is mandatory for those whose basic salary component is <=15000 per month. The employee's contribution is 12% of the basic salary. For example, if an employee draws a basic salary of 7000, Rs. 840 will be deducted from his gross pay towards EPF. Also, note that the ceiling limit for EPF calculation remains Rs. 15000 as basic pay. For better understanding, consider an employee whose basic pay is 20000 per month. If they have voluntarily opted for EPF, their EPF contribution will be calculated based on a basic pay of Rs. 15000, as this forms the ceiling amount. The deducted amount would be Rs. 1800 (which is 12% of 15000). Depending on the company policy, you can raise this ceiling to the actual basic pay of an employee, but it's not mandatory.
Now, for the employer's contribution:
The employer contributes 13.61% of the basic pay towards EPF. This 13.61% is divided as follows:
- 8.33% towards EPS (Employee Pension Scheme)
- 3.67% towards EPF (Employee Provident Fund)
- 1.10% for admin charges of PF
- 0.5% towards EDLIS (Employee Deposit Linked Insurance Scheme)
- 0.01% towards EDLI admin charges.
Thanks.
From India, Mumbai
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ESI is mandatory for employees with gross pay less than or equal to Rs 15,000 per month. It is a two-way contribution. The employee contributes 1.75% of gross earnings per month, while the employer contributes 4.75% of the employee's gross earnings.
Regarding Professional Tax (PT) in Maharashtra:
- It's nil for gross earnings less than or equal to Rs 7,500 per month.
- Rs. 2,100 annually for gross earnings less than or equal to Rs 10,000, but more than Rs 7,500 per month (equivalent to Rs 175 per month).
- Rs. 2,500 annually for gross earnings exceeding Rs 10,000 (Rs. 200 per month and Rs. 300 in February).
Thank you.
From India, Mumbai
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Regarding Professional Tax (PT) in Maharashtra:
- It's nil for gross earnings less than or equal to Rs 7,500 per month.
- Rs. 2,100 annually for gross earnings less than or equal to Rs 10,000, but more than Rs 7,500 per month (equivalent to Rs 175 per month).
- Rs. 2,500 annually for gross earnings exceeding Rs 10,000 (Rs. 200 per month and Rs. 300 in February).
Thank you.
From India, Mumbai
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I am working as a sales coordinator for a six-month probation, and leaves are not allotted to me. Therefore, I am getting salary deductions by using my leaves from my basic pay amount. I just want to know if deducting salary from the basic pay is right or wrong?
From India, Mumbai
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From India, Mumbai
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