Dear Seniors,
Can i show Employer PF contribution as part of CTC (as shown below). Need your expert opinion.
Components:
Basic Pay + DA:
House Rent Allowance:
Medical Allowance:
Conveyance
Special Allowance
Bonus
Employer PF:
Total (A)
Deduction
Professional Tax
Provident Fund (Employee & Employer Contribution)
Total Deduction (B)
Net Take Home before TDS:
Is the above bifurcation legal, kindly advice.
Regards,
Glenn
From India, Mumbai
2Can i show Employer PF contribution as part of CTC (as shown below). Need your expert opinion.
Components:
Basic Pay + DA:
House Rent Allowance:
Medical Allowance:
Conveyance
Special Allowance
Bonus
Employer PF:
Total (A)
Deduction
Professional Tax
Provident Fund (Employee & Employer Contribution)
Total Deduction (B)
Net Take Home before TDS:
Is the above bifurcation legal, kindly advice.
Regards,
Glenn
From India, Mumbai
you can also include employer pf into CTC but when deducting you must only deduct the employees part of contribution means the employers pf to be added and employees pf has to be deducted not to deduct both.
Suresh
From India, Bangalore
Suresh
From India, Bangalore
Dear Suresh,
You mean to say in deduction only employee PF has to be mentioned. We at our organization deduct 1665 total PF (780 + 885), so in the payslip we will havbe to mentioned only 780/- and not 1665/-
kindly advice.
Glenn
From India, Mumbai
You mean to say in deduction only employee PF has to be mentioned. We at our organization deduct 1665 total PF (780 + 885), so in the payslip we will havbe to mentioned only 780/- and not 1665/-
kindly advice.
Glenn
From India, Mumbai
Dear Seniors,
i have attach the pay slip that we give to our employees for a salary of Rs. 28000/- CTC per month, we deduct PF of 1665/- (both employer 885 & employee 780 contribution) and PT of Rs. 200, so the total deduction that we do is Rs. 1865/- and the net paid to the employee is Rs. 26135/- (direct debit in bank)
I would like to know if i include employer PF in earnings and deduct employee PF of Rs. 780 from his salary the total deduction will be 780 + 200 = 980 (28000 - 980 = 27020) so the amount showed in the payslip will be 27020, but the amount actual deposited in the bank will be 26135 (27020 - 885).
So how do we tell the employee that employer contribution is also been deducted and that is the reason the payslip amount is different and the actual payment in bank is different.
I would really help all the suggestion and help that i can get on this.
Regards,
Glenn
From India, Mumbai
i have attach the pay slip that we give to our employees for a salary of Rs. 28000/- CTC per month, we deduct PF of 1665/- (both employer 885 & employee 780 contribution) and PT of Rs. 200, so the total deduction that we do is Rs. 1865/- and the net paid to the employee is Rs. 26135/- (direct debit in bank)
I would like to know if i include employer PF in earnings and deduct employee PF of Rs. 780 from his salary the total deduction will be 780 + 200 = 980 (28000 - 980 = 27020) so the amount showed in the payslip will be 27020, but the amount actual deposited in the bank will be 26135 (27020 - 885).
So how do we tell the employee that employer contribution is also been deducted and that is the reason the payslip amount is different and the actual payment in bank is different.
I would really help all the suggestion and help that i can get on this.
Regards,
Glenn
From India, Mumbai
You have to show the Gross Salary as Earnings and Deductions will be of employee only. So the Employer contribution towards PF will not be shown in Earnings and Deductions of the payslip. Hope this resolves your query
From India, Ahmadabad
From India, Ahmadabad
you can show the employer pf contribution into CTC, in CTC there are three parts 1) Monthly Earnings 2) Deductions 3) Annual benefits, CTC = Monthly earnings x 12 +Total Annual benefits , you can show the Company PF contribution in Annual benefits block.
A.P.Kumar
From India, Hyderabad
A.P.Kumar
From India, Hyderabad
Dear Glen,
It should be something like this. Gross shows all the fixed earnings and deductions are only of employee's. CTC is the total of gross and employers deduction.
This is because CTC is the total that a company contributes for an employee. Employees deduction is from the gross which is for is benefit and employers contribution is over and above gross.
Annual CTC 246000.00
Basic (40% of gross) 7776.64
HRA (40% of basic) 3110.66
Conveyance Allowance 800.00
Medical Reimbursement 1250.00
Special Allowance 6504.30
Gross Salary 19441.60
Less Deductions
PT 200.00
PF (12% from basic) 933.20
ESI (1.75% from gross, if gross < 15000) 0.00
TDS
Net Salary (take-home) 18308.40
Employer’s Contribution
PF (12% from basic) 933.20
PF Admin charges (1.61% on basic) 125.20
ESI (4.75% from gross, if gross < 15000) 0.00
Total Monthly CTC 20500.00
From India, Hyderabad
It should be something like this. Gross shows all the fixed earnings and deductions are only of employee's. CTC is the total of gross and employers deduction.
This is because CTC is the total that a company contributes for an employee. Employees deduction is from the gross which is for is benefit and employers contribution is over and above gross.
Annual CTC 246000.00
Basic (40% of gross) 7776.64
HRA (40% of basic) 3110.66
Conveyance Allowance 800.00
Medical Reimbursement 1250.00
Special Allowance 6504.30
Gross Salary 19441.60
Less Deductions
PT 200.00
PF (12% from basic) 933.20
ESI (1.75% from gross, if gross < 15000) 0.00
TDS
Net Salary (take-home) 18308.40
Employer’s Contribution
PF (12% from basic) 933.20
PF Admin charges (1.61% on basic) 125.20
ESI (4.75% from gross, if gross < 15000) 0.00
Total Monthly CTC 20500.00
From India, Hyderabad
Dear Seniors, Thanks all for your help and suggestions, i will try to incorporate these suggestions...Thanks Suresh, Saji, Bhandhavi, A.P.Kumar.... Regards, Glenn
From India, Mumbai
From India, Mumbai
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Employer-PF-res trict to wages of Rs 6500.pdf
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