Dear pon 1965,
I expect people to use language with respect to others while addressing anybody on this forum. I work with very big MNCs for more than a decade and I am aware what is happening currently while offering CTC to a candidate in the queue for job.
What I have said that Company's contribution to PF for an employee cannot be deducted from his monthly salary which is a violation of the PF Act. What is deducted from the salary is the employee's own contribution. A company includes in CTC all costs incurred by them towards an employee which include PF contribution/ contribution for gratuity and for pension also if there is a separate pension fund. Companies enjoy Income Tax benefits for these contributions and these are defenitely part of CTC but not part of monthly salary.
From India, Calcutta
6I expect people to use language with respect to others while addressing anybody on this forum. I work with very big MNCs for more than a decade and I am aware what is happening currently while offering CTC to a candidate in the queue for job.
What I have said that Company's contribution to PF for an employee cannot be deducted from his monthly salary which is a violation of the PF Act. What is deducted from the salary is the employee's own contribution. A company includes in CTC all costs incurred by them towards an employee which include PF contribution/ contribution for gratuity and for pension also if there is a separate pension fund. Companies enjoy Income Tax benefits for these contributions and these are defenitely part of CTC but not part of monthly salary.
From India, Calcutta
Yea, I don't think your company has done anything wrong in including employer share of PF as part of your CTC. This is a universal practice. See, CTC is not limited to your gross salary but reflects your proportional cost to the company. That way CTC includes welfare expenses too like canteen whether you are availing it or not, cost of uniform etc. In deed CTC is a misleading figure "What it reveals is suggestive, while what it conceals is vital". Similarly, conceptually Bonus is deferred wages. Hence keeping a provision for bonus amount every month although payment is made annually is not improper. I do not find fault in both the practices
Regards
KK
Regards
KK
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