Dear Mr.Tatkare,
The management can deduct the employer share as well as employee share from CTC because all costs that incur because of recruiting an individual constitutes an CTC. I hope you know very well that all Salary Components are included in CTC.
Its like, Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Leave Travel Allowance + Medical Allowance + Other & Special Allowance + All employer part of contributions to deductions = Cost to the Company
Cost to the Company - All employer part of contributions to deductions = Gross Salary
Gross Salary - All employee part of contributions to deductions = Net Salary
IN this deductions are mostly EPF, ESI, PT, Loan, TDS, etc.
So, It is obviously not the question of ethics... It is upon the perception of the individual.
From India, Chennai
6The management can deduct the employer share as well as employee share from CTC because all costs that incur because of recruiting an individual constitutes an CTC. I hope you know very well that all Salary Components are included in CTC.
Its like, Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Leave Travel Allowance + Medical Allowance + Other & Special Allowance + All employer part of contributions to deductions = Cost to the Company
Cost to the Company - All employer part of contributions to deductions = Gross Salary
Gross Salary - All employee part of contributions to deductions = Net Salary
IN this deductions are mostly EPF, ESI, PT, Loan, TDS, etc.
So, It is obviously not the question of ethics... It is upon the perception of the individual.
From India, Chennai
hi,
Except belwo effect nothing will be changed, it remains same. Ther eis no reduction in Net salary.
EDLI will be calculated 0.5% on Pension wage, currently Rs 6500, if it is increased to Rs 15000, need to calculate 0.5% on Rs 15000 and even it is applicable for admin charges of EDLI 0.01% on Rs 15000.(It costs to the employer only)
Due to this, impact will be there on employer EDLI contributions.
1.difference amount would be added to EPF amount of 3.67% same as before.
If Basic is Rs 20000/- (Greater than Rs 15000)
EPF Contribution from Employee : Rs 2400 (12% on Basic 20000)
EPS Contribution from Employer : Rs 1250 (8.33% on maximum limit Rs 15000*)
EPF Contribution from Employer : Rs 1150 (3.67% on 20000 + diff amount of 416)
2.If the Basic salary is less than Rs 15000, then Pension Contribution would be 8.33% on Basic and Pf Contribution from the employer would be 3.67% on Basic, there will not be any difference amount to add the value to EPF (3.67%)
If Basic is 10000/- (Less than Rs 15000)
EPF Contribution from Employee : Rs 1200 (12% on Basic 10000)
EPS Contribution from Employer : Rs 833 (8.33% on Basic 10000)
EPF Contribution from Employer : Rs 367 (3.67% on basic 10000)
From India, Visakhapatnam
Except belwo effect nothing will be changed, it remains same. Ther eis no reduction in Net salary.
EDLI will be calculated 0.5% on Pension wage, currently Rs 6500, if it is increased to Rs 15000, need to calculate 0.5% on Rs 15000 and even it is applicable for admin charges of EDLI 0.01% on Rs 15000.(It costs to the employer only)
Due to this, impact will be there on employer EDLI contributions.
1.difference amount would be added to EPF amount of 3.67% same as before.
If Basic is Rs 20000/- (Greater than Rs 15000)
EPF Contribution from Employee : Rs 2400 (12% on Basic 20000)
EPS Contribution from Employer : Rs 1250 (8.33% on maximum limit Rs 15000*)
EPF Contribution from Employer : Rs 1150 (3.67% on 20000 + diff amount of 416)
2.If the Basic salary is less than Rs 15000, then Pension Contribution would be 8.33% on Basic and Pf Contribution from the employer would be 3.67% on Basic, there will not be any difference amount to add the value to EPF (3.67%)
If Basic is 10000/- (Less than Rs 15000)
EPF Contribution from Employee : Rs 1200 (12% on Basic 10000)
EPS Contribution from Employer : Rs 833 (8.33% on Basic 10000)
EPF Contribution from Employer : Rs 367 (3.67% on basic 10000)
From India, Visakhapatnam
Need Urgent Reply :
Hi All,
Please let me know what is maximum Companies are doing for PF ( from 6500 - 1500 Basic ) as per Gross base or CTC Base.
If existing employee( working more then 1 yr ) have 12000/- as Basic, what is the companies doing from this month( Sep 14).
Are they paying employer Share or showing total salary as CTC and deducting 2 parts from Employee.
From India, Hyderabad
Hi All,
Please let me know what is maximum Companies are doing for PF ( from 6500 - 1500 Basic ) as per Gross base or CTC Base.
If existing employee( working more then 1 yr ) have 12000/- as Basic, what is the companies doing from this month( Sep 14).
Are they paying employer Share or showing total salary as CTC and deducting 2 parts from Employee.
From India, Hyderabad
Dear Expert,
From past two weeks I am facing lot of pressure both from Management and Employee. Management says whatever deductions of PF is to be deducted from CTC itself which is true. But employee will get very less amount in hand as both employee and employer share will be deducted from employee salary itself.
How are you all handling this situation?
From India, Mumbai
From past two weeks I am facing lot of pressure both from Management and Employee. Management says whatever deductions of PF is to be deducted from CTC itself which is true. But employee will get very less amount in hand as both employee and employer share will be deducted from employee salary itself.
How are you all handling this situation?
From India, Mumbai
Hi,
Can anyone tell me what are the salary heads need to be considered for calculation of PF according to these notification.
We have Basic, HRA, Conveyance, Medical Allowance, Special Allowance and currently we are calculating pf on Basic+Special Allowance.
Please clarify my query.
Regards,
Gajendra
From India, Bangalore
Can anyone tell me what are the salary heads need to be considered for calculation of PF according to these notification.
We have Basic, HRA, Conveyance, Medical Allowance, Special Allowance and currently we are calculating pf on Basic+Special Allowance.
Please clarify my query.
Regards,
Gajendra
From India, Bangalore
if employees' total salary is Rs.10000/- and basic+ DA is Rs. 7500/-, then pf will be calculated on Rs. 10000/- or on Rs. 7500/-?
From India, Bangalore
From India, Bangalore
Hello!
Under the PF Act, following components of salary do not attract PF deduction;
i) House Rent Allowance
ii)Overtime Allowance
iii) Bonus
iv)Commission or any other similar allowance
As per judgments delivered by Gujarat, Madhya Pradesh & Madras High Courts, it has been held that all allowances ( i.e. Conveyance, Medical, Education, Attire, Special & other allowances etc. etc.), which are paid universally, necessarily & ordinarily to all employees, they will be treated as part & parcel of basic wages & that will attract the PF contribution. However, the appeals have been filed in the Supreme Court by M/s. Surya Roshini Ltd. & others, which are likely to be heared & decided in near future.
Also the Basic should be calculated @ not less than 55% of gross.
I hope this helps!!!!!
From India, Mumbai
Under the PF Act, following components of salary do not attract PF deduction;
i) House Rent Allowance
ii)Overtime Allowance
iii) Bonus
iv)Commission or any other similar allowance
As per judgments delivered by Gujarat, Madhya Pradesh & Madras High Courts, it has been held that all allowances ( i.e. Conveyance, Medical, Education, Attire, Special & other allowances etc. etc.), which are paid universally, necessarily & ordinarily to all employees, they will be treated as part & parcel of basic wages & that will attract the PF contribution. However, the appeals have been filed in the Supreme Court by M/s. Surya Roshini Ltd. & others, which are likely to be heared & decided in near future.
Also the Basic should be calculated @ not less than 55% of gross.
I hope this helps!!!!!
From India, Mumbai
Sir,
Kindly help me clarify these doubts.
Whether an employee who joins PF on or after 1st september can become member of the pension scheme, or would the whole 12% EMPLOYER CONTRIBUTION go to PF?
If there is any change in rules(for employees joining on or after Sept 2014) then is it applicable for both categories, one with salary under Rs. 15000/- and the other exceeding Rs. 15000/-?
From India, Ernakulam
Kindly help me clarify these doubts.
Whether an employee who joins PF on or after 1st september can become member of the pension scheme, or would the whole 12% EMPLOYER CONTRIBUTION go to PF?
If there is any change in rules(for employees joining on or after Sept 2014) then is it applicable for both categories, one with salary under Rs. 15000/- and the other exceeding Rs. 15000/-?
From India, Ernakulam
Hi All,
I heard it. Is it correct?
Due to this incresing of pension wage limit from Rs 6500 to Rs 15000, is there any effect for International Workers contributions?
Like entire contribution wil be deposited in to PF account instead of 8.33% in pension account? if so, is it applicable for all inter national workers who are working before and after 1st sep 2014?
From India, Visakhapatnam
I heard it. Is it correct?
Due to this incresing of pension wage limit from Rs 6500 to Rs 15000, is there any effect for International Workers contributions?
Like entire contribution wil be deposited in to PF account instead of 8.33% in pension account? if so, is it applicable for all inter national workers who are working before and after 1st sep 2014?
From India, Visakhapatnam
Dear Sir,
one of my client has registered themselves under PF Act w.e.f Sep 2014 now we are going to generate the ECR for the month of Sep and Oct 14, but issue is they have 21 employees for Whom ECR is to be made and out of which Basic of 20 employees is above Rs15000. Most of the employee does not want to get the PF deducted from thier Salaries, now what is required to be done in this case as we have not submitted any form to EPF office regarding exemption of employees.
From India, Bhopal
one of my client has registered themselves under PF Act w.e.f Sep 2014 now we are going to generate the ECR for the month of Sep and Oct 14, but issue is they have 21 employees for Whom ECR is to be made and out of which Basic of 20 employees is above Rs15000. Most of the employee does not want to get the PF deducted from thier Salaries, now what is required to be done in this case as we have not submitted any form to EPF office regarding exemption of employees.
From India, Bhopal
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Splitting of minimum wages for PF in abeyance (1).pdf