Hi,
My current employer is a private limited company with 90+ employees. In the CTC breakdown, the company includes the employer's PF contribution amount. Here is an example:
Basic: 1,60,000
HRA: 80,000
Conveyance: 9,600
Medical: 15,000
Special Allowance: 1,16,200
Employer Provident Fund: 19,200
Total CTC: 4,00,000
Is this breakdown correct? Please help me understand.
Thanks
From India, Chennai
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2My current employer is a private limited company with 90+ employees. In the CTC breakdown, the company includes the employer's PF contribution amount. Here is an example:
Basic: 1,60,000
HRA: 80,000
Conveyance: 9,600
Medical: 15,000
Special Allowance: 1,16,200
Employer Provident Fund: 19,200
Total CTC: 4,00,000
Is this breakdown correct? Please help me understand.
Thanks
From India, Chennai
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Hi, Yes its correct what is the meaning of CTC(cost to company) it means whatever the company spends money on employees that comes under in CTC.
From India, Mumbai
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From India, Mumbai
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yes this is correct because CTC mean cost to company in which include all tips of benefit.
From India, Gurgaon
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From India, Gurgaon
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Yes, this is correct. CTC means Cost To Company.
But dear friends, kindly enlighten our readers whether only that part of the CTC, like the employer's contribution to PF, should get reflected in the CTC details provided to the employee? To tell you the fact, it is one of the many HR strategies to show cost-cutting/effectiveness in their personal KRAs. Otherwise, why should the other details of the employer's cost on the employee, which should feature in the CTC, not be shown or provided to the employee? Friends, do not be beguiled. Employers will continue to show (and legally correctly too - whether morally or ethically is a question mark) such scattered CTC. So in the future, do not ask for your CTC because it is not actually yours, it is the employer's CTC. Rather, ask for your THP - Take Home Pay, and you will stay benefited.
From India, Kolkata
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But dear friends, kindly enlighten our readers whether only that part of the CTC, like the employer's contribution to PF, should get reflected in the CTC details provided to the employee? To tell you the fact, it is one of the many HR strategies to show cost-cutting/effectiveness in their personal KRAs. Otherwise, why should the other details of the employer's cost on the employee, which should feature in the CTC, not be shown or provided to the employee? Friends, do not be beguiled. Employers will continue to show (and legally correctly too - whether morally or ethically is a question mark) such scattered CTC. So in the future, do not ask for your CTC because it is not actually yours, it is the employer's CTC. Rather, ask for your THP - Take Home Pay, and you will stay benefited.
From India, Kolkata
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Dear Friend,
The Cost to Company (CTC) concept is being followed by all companies nowadays. It exhibits the total cost to the employee. Concerning the PF contribution, the employer's contribution towards the employee is a cost to the company. Hence, it is shown while calculating the CTC (cost to the company). Similarly, if an employee falls under the purview of the ESI Act, the employer's ESI contribution at 4.75% will be reflected in the CTC. Likewise, the gratuity to be paid will be taken into consideration for the CTC calculation, among many other factors.
It is essential not to confuse take-home pay with CTC.
Thanks,
Sibabrata Majumdar
Management Consultant
Legal & HR
sibabrata.majumdar@gmail.com
From India, Calcutta
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The Cost to Company (CTC) concept is being followed by all companies nowadays. It exhibits the total cost to the employee. Concerning the PF contribution, the employer's contribution towards the employee is a cost to the company. Hence, it is shown while calculating the CTC (cost to the company). Similarly, if an employee falls under the purview of the ESI Act, the employer's ESI contribution at 4.75% will be reflected in the CTC. Likewise, the gratuity to be paid will be taken into consideration for the CTC calculation, among many other factors.
It is essential not to confuse take-home pay with CTC.
Thanks,
Sibabrata Majumdar
Management Consultant
Legal & HR
sibabrata.majumdar@gmail.com
From India, Calcutta
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My advice is do not get carried away by the CTC .Consider only the salary you get barring employer’s expenses to PF,'ESI , Gratuity,conveyance bonus,and other perks. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Employer Provident Fund 19,200 >>>>>>&a mp;gt;>>>>>& ;gt; Is this Employee's + Employer's??
For example, to make it very simple, per month 780 is the PF contribution from the employee's side, and 780 is the PF contribution from the employer's side. So... 19200 >>> Is something like (780+780)*12 months???? or 780 (only employer's PF contribution) * 12 months?
Just need clarity, please!!!
From India, Bangalore
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For example, to make it very simple, per month 780 is the PF contribution from the employee's side, and 780 is the PF contribution from the employer's side. So... 19200 >>> Is something like (780+780)*12 months???? or 780 (only employer's PF contribution) * 12 months?
Just need clarity, please!!!
From India, Bangalore
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Yes, it is correct. CTC stands for Cost to Company. Whatever term is used, any financial element that the employer gives to the employee will fall under CTC. There are companies where the gratuity amount, which may become applicable after five years of continuous service, shall also be portioned on a monthly basis. This will also be taken into account for the purpose of arriving at CTC.
Thanks,
R K Nair
From India, Aizawl
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Thanks,
R K Nair
From India, Aizawl
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Correct. The Employer contribution for provident is the cost to the company, Hence it can be included in the CTC.
From India, Hyderabad
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From India, Hyderabad
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Employer-PF-res trict to wages of Rs 6500.pdf