Hello. My company did not use to provide provident fund but from April, 2023 they have started. My salary has gone down by about 2500 approximately ( in hand ). I can see they are deducting my share of PF from pay slip but cant see theirs contribution amount. The HR is telling me that the Employer's PF Share is included in my CTC. Is this correct? Can they cut that amount from my CTC or should they pay it from their pocket but not from my CTC. Please advice. Thanks.
From India, Kolkata
From India, Kolkata
Hi
Yes Employer share of PF will be directly credited to your PF Account. In normal course Employee share of PF has to be separate apart from fixed salary. But now it has become trend most of the Corporates follow the tactics of adding Employer PF to CTC. Employer point of view is that whatever expenses incurred per employee is added to their salary which is cost to the company. Many company's add Employer ESI contribution, Gratuity premium to CTC.
Since these components are out of CTC technically speaking Employer is right only provided the Gross earnings of the Employee should not be less than the minimum wages.
From India, Madras
948Yes Employer share of PF will be directly credited to your PF Account. In normal course Employee share of PF has to be separate apart from fixed salary. But now it has become trend most of the Corporates follow the tactics of adding Employer PF to CTC. Employer point of view is that whatever expenses incurred per employee is added to their salary which is cost to the company. Many company's add Employer ESI contribution, Gratuity premium to CTC.
Since these components are out of CTC technically speaking Employer is right only provided the Gross earnings of the Employee should not be less than the minimum wages.
From India, Madras
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