Hello friends,
I've joined a BPO last month. They've offered me the in-hand salary of 20K. But when I got the salary, the 12% PF was also deducted from the basic salary, and eventually, the changes have been reflected in my offered in-hand salary.
I'm puzzled. I was under the impression that the in-hand salary is the salary offered after all deductions for allowances and expenses.
Kindly help me understand, my dear friends.
From Germany, Frankfurt Am Main
Acknowledge(0)
Amend(0)
I've joined a BPO last month. They've offered me the in-hand salary of 20K. But when I got the salary, the 12% PF was also deducted from the basic salary, and eventually, the changes have been reflected in my offered in-hand salary.
I'm puzzled. I was under the impression that the in-hand salary is the salary offered after all deductions for allowances and expenses.
Kindly help me understand, my dear friends.
From Germany, Frankfurt Am Main
Acknowledge(0)Amend(0)
CTC - cost to company includes everything so they did it right and this is the practice across industry !
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Anish,
There are two components of PF: employee and employer contributions. The employer's contribution is a part of the CTC, whereas the employee's contribution is deducted from the salary. Please understand that the deducted money is indeed your salary, which is invested by the company, and you earn an annual interest on the cumulative savings of your and the company's share.
I hope that answers your query. You should be worried only if the employer's share is deducted from your salary.
From India, Mumbai
Acknowledge(0)Amend(0)
82There are two components of PF: employee and employer contributions. The employer's contribution is a part of the CTC, whereas the employee's contribution is deducted from the salary. Please understand that the deducted money is indeed your salary, which is invested by the company, and you earn an annual interest on the cumulative savings of your and the company's share.
I hope that answers your query. You should be worried only if the employer's share is deducted from your salary.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Anish,
As per the law, 12% of the basic salary is deducted for PF, and an additional 12% is contributed by the employer (the company you work for). Therefore, when you were offered the package with the gross monthly amount, it is understood that PF and Professional Tax (PT) will be deducted, and the amount after deduction will be your net take-home salary.
Since you did not inquire about the structure and deductions, it is likely that your employer did not provide you with this information.
I hope this clarifies things for you.
Best regards, [Your Name]
From India, Mumbai
Acknowledge(0)Amend(0)
As per the law, 12% of the basic salary is deducted for PF, and an additional 12% is contributed by the employer (the company you work for). Therefore, when you were offered the package with the gross monthly amount, it is understood that PF and Professional Tax (PT) will be deducted, and the amount after deduction will be your net take-home salary.
Since you did not inquire about the structure and deductions, it is likely that your employer did not provide you with this information.
I hope this clarifies things for you.
Best regards, [Your Name]
From India, Mumbai
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Salary structure CTC 15000.xlsx