Dear All, i wanted to know that PF Employer Share is Contribute by Employer or Employee. Because some company show both the contribute from Employee. it that write or not? Regards Jesmin
From India, Surat
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2From India, Surat
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Most private companies offer compensation on a CTC basis, right? In this case, both contributions are part of CTC, and it will not make any difference whether Employee Contribution is different from Employer Contribution. Even you can find Gratuity as part of CTC.
From India, Bangalore
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From India, Bangalore
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Hi Jesmin, If both the contributions are deducted from Gross then it is wrong. Please check.
From India, Hyderabad
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From India, Hyderabad
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Hi, Jasmin first see the Salary break up and then see Employer share also calculated on Same Basic as calculated from employee, if its in this process then its wrong way.
From India, Mumbai
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From India, Mumbai
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PF employer share is mentioned by private companies in the CTC letter separately. The PF share of the employee is DEDUCTED from the employee's earnings and hence is not shown separately on the CTC but is part of your earning and other allowances. Both are deducted at 12% of the basic salary unless the employee decides to contribute more from his pocket.
I have written a detailed article about how the PF's (employer and employee) are shown on the salary slip and CTC letter with respect to their deduction. You may find it useful. [EPF vs PPF Vs VPF With Respect To CTC And Salary Slip - AM22 Tech](http://www.am22tech.com/compare-provident-fund/)
From India, Delhi
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I have written a detailed article about how the PF's (employer and employee) are shown on the salary slip and CTC letter with respect to their deduction. You may find it useful. [EPF vs PPF Vs VPF With Respect To CTC And Salary Slip - AM22 Tech](http://www.am22tech.com/compare-provident-fund/)
From India, Delhi
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Please refer to Para 31 of the EPF Scheme. It is as follows:
" 31. Employer’s share not to be deducted from the members
Notwithstanding any contract to the contrary the employer shall not be
entitled to deduct the employer’s contribution from the wage of a member or
otherwise to recover it from him."
From India, Madras
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" 31. Employer’s share not to be deducted from the members
Notwithstanding any contract to the contrary the employer shall not be
entitled to deduct the employer’s contribution from the wage of a member or
otherwise to recover it from him."
From India, Madras
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Thank you all for your helpful reply. if both the contribution deducted from our salary then what should i do.? i have to tell my HR or Complain some where.?
From India, Surat
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From India, Surat
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Hi, directly don’t think about that, if both the contributions is deducting from Employe then you clear with your HR. your concept will be clear.
From India, Mumbai
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From India, Mumbai
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Please understand that there is a difference in "Gross" salary and "CTC". The gross salary is the salary that you earn, and PF is deducted on the basic component of the earned salary. The law prohibits deduction of employer contributions from your salary. For example, suppose you have earned Rs 4000 as basic, then Rs 480 will be deducted from your salary, and the employer has to pay Rs. 480. The employer cannot deduct Rs 960 from your salary.
The CTC is the COST TO COMPANY and includes all the costs incurred by the company by hiring you. It will include your gross salary, PF payable by the employer, ESIC (employer component), bonus, gratuity, transport facility, etc. It will be clear that the company can include any components that they incur as costs in calculating your CTC. Hence, if the PF payable by the employer is shown in CTC, it will not violate any law.
From India, Panaji
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The CTC is the COST TO COMPANY and includes all the costs incurred by the company by hiring you. It will include your gross salary, PF payable by the employer, ESIC (employer component), bonus, gratuity, transport facility, etc. It will be clear that the company can include any components that they incur as costs in calculating your CTC. Hence, if the PF payable by the employer is shown in CTC, it will not violate any law.
From India, Panaji
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CTC is a financial term - Cost to the Company - that means whatever expenses are incurred on an employee need to be included in the CTC. PF, Gratuity, and other estimated legal expenses should also be taken into account.
When negotiating, it is advisable to focus on the net take-home salary or gross salary to avoid confusion and ensure a clear understanding of the best offer.
If you have accepted an offer based on CTC, the organization's PF contribution must also be considered. This is why legal action cannot be taken against the employer.
From India, Mumbai
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When negotiating, it is advisable to focus on the net take-home salary or gross salary to avoid confusion and ensure a clear understanding of the best offer.
If you have accepted an offer based on CTC, the organization's PF contribution must also be considered. This is why legal action cannot be taken against the employer.
From India, Mumbai
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