hello everybody i am priyanka and living in pune wanted to ask that can provident fund (employer`s contribution) be deducted from the CTC of the employee ? because i feel that if company does that so in dat case an employee is paying twice for the provident fund from his own salary. plz suggest. thanks
From India, Pune
2From India, Pune
Hi Priyanka,
CTC Means Cost to Company in this concept company includs P.F Contirbuions both employee and employer here there is no confusion. Now a days every company is following the CTC concept.
earlier every company use to pay ( employer contribution ) P.F with their own and they won't touch the salary of employee . But these days company's to avoid of Employer P.F Contirbution they simply throwing on employees on the name of CTC .
Regars,
From India, Hyderabad
CTC Means Cost to Company in this concept company includs P.F Contirbuions both employee and employer here there is no confusion. Now a days every company is following the CTC concept.
earlier every company use to pay ( employer contribution ) P.F with their own and they won't touch the salary of employee . But these days company's to avoid of Employer P.F Contirbution they simply throwing on employees on the name of CTC .
Regars,
From India, Hyderabad
Hi Priyanka,
Now many companies using CTC concept. The calculation is as under:
CTC - 12% of basic(Employer part)=Gross Salary
Gross Salary - 12% of basic (Employee part)
Rest 1.61% employer has to pay.
you can convince employee at the time of joining that the employer part of PF is included in their CTC.
For employee this is loss of 12%, but companies are using this concept, and they are not legally wrong.
In my company we have given PF facility to all, it means for those also whose basic is more than 6500/- but 6500/- is cut off basic. it means if A has a basic of 10000/- he will have to pay 780/-(12% of 6500) as employee and the same as employer part.
Please revert for any clarification.
Sanjeev
From India, Delhi
Now many companies using CTC concept. The calculation is as under:
CTC - 12% of basic(Employer part)=Gross Salary
Gross Salary - 12% of basic (Employee part)
Rest 1.61% employer has to pay.
you can convince employee at the time of joining that the employer part of PF is included in their CTC.
For employee this is loss of 12%, but companies are using this concept, and they are not legally wrong.
In my company we have given PF facility to all, it means for those also whose basic is more than 6500/- but 6500/- is cut off basic. it means if A has a basic of 10000/- he will have to pay 780/-(12% of 6500) as employee and the same as employer part.
Please revert for any clarification.
Sanjeev
From India, Delhi
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PROVIDENT FUND CALCULATION.xls
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf