Dear All,
Please suggest me that how we can able to find out that one share of PF has been contributed by the employer or else both the share has been deducted from our CTC only.
Please do reply.
Many Thanks
Ranjana Chourasia
3Please suggest me that how we can able to find out that one share of PF has been contributed by the employer or else both the share has been deducted from our CTC only.
Please do reply.
Many Thanks
Ranjana Chourasia
Hello Ranjana,
Your query is little confusing...
I am trying to answer interpreting it the way I understand from it. Please post in detail if it is meant otherwise...
1) If you have to know the deposits have been made to your PF account or not -
Every person will have a number for their PF Account. Usually it would be shared... I think you can check the balance from time to time and thus ensure if your monthly deposits are being submitted to the right place...
2) COntribution:
Please note that PF contribution is equally beared by employee and employer...
If your basic + da is less than or equal to stipulated 6500 (as per act) then you'd get 12% on your actual (basic + da)
If however your basic + da is more than 6500, 12% contribution is restricted to the said limit of 6500.
However, many companies out of good will give 12% on the actual. This depends on company's policy. A bare minimum of 12% on 6500 (780/-) per month is to be contributed from both ends....
In addition to this, administration and account handling charges are to be paid by the employer (not deducted from your salary). The amount comes out to be something around 1.6% of basic+da.
Also note that out of the 12% of the employer's contribution, only 3.67% goes to PF fund, the main contribution of 8.33% goes to pension fund and act as retirement pension.
Again to solve the confusion about how it would be reflected on your salary -->
Please note that after adding all the components that your company pays you and coming to your monthly gross salary, the company then subtracts from it statutory deductions like PF, ESIC (if any), PT, TDS (as applicability) and then comes to your monthly net (which will be your take home)
So your 12% of contribution is deducted from your salary...
As far as employer's contribution is concerned, it is an expense of the company. They may include it in your CTC but can't deduct it from your salary.... Meaning to say that...
Your monthly Gross (Basic + DA + HRA + Conveyance + Allowances etc) * 12 = Annual Gross
Annual Gross + Bonus + Employer's PF + Gratuity COntribution + Any contribution / Expense company makes towards you = CTC
I hope I was able to clear your doubts... For further clarifications you can also search for other threads in PF where similar discussions have happend and try to understand the liability and other things....
1) https://www.citehr.com/67598-provide...-pf-trust.html
2) HR SUCCESS TALK: PF Fundamentals everyone should know!!
3) http://epfindia.gov.in <link updated to site home>
From India, Mumbai
Your query is little confusing...
I am trying to answer interpreting it the way I understand from it. Please post in detail if it is meant otherwise...
1) If you have to know the deposits have been made to your PF account or not -
Every person will have a number for their PF Account. Usually it would be shared... I think you can check the balance from time to time and thus ensure if your monthly deposits are being submitted to the right place...
2) COntribution:
Please note that PF contribution is equally beared by employee and employer...
If your basic + da is less than or equal to stipulated 6500 (as per act) then you'd get 12% on your actual (basic + da)
If however your basic + da is more than 6500, 12% contribution is restricted to the said limit of 6500.
However, many companies out of good will give 12% on the actual. This depends on company's policy. A bare minimum of 12% on 6500 (780/-) per month is to be contributed from both ends....
In addition to this, administration and account handling charges are to be paid by the employer (not deducted from your salary). The amount comes out to be something around 1.6% of basic+da.
Also note that out of the 12% of the employer's contribution, only 3.67% goes to PF fund, the main contribution of 8.33% goes to pension fund and act as retirement pension.
Again to solve the confusion about how it would be reflected on your salary -->
Please note that after adding all the components that your company pays you and coming to your monthly gross salary, the company then subtracts from it statutory deductions like PF, ESIC (if any), PT, TDS (as applicability) and then comes to your monthly net (which will be your take home)
So your 12% of contribution is deducted from your salary...
As far as employer's contribution is concerned, it is an expense of the company. They may include it in your CTC but can't deduct it from your salary.... Meaning to say that...
Your monthly Gross (Basic + DA + HRA + Conveyance + Allowances etc) * 12 = Annual Gross
Annual Gross + Bonus + Employer's PF + Gratuity COntribution + Any contribution / Expense company makes towards you = CTC
I hope I was able to clear your doubts... For further clarifications you can also search for other threads in PF where similar discussions have happend and try to understand the liability and other things....
1) https://www.citehr.com/67598-provide...-pf-trust.html
2) HR SUCCESS TALK: PF Fundamentals everyone should know!!
3) http://epfindia.gov.in <link updated to site home>
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf