Dear Linkedin Memeber,
If an employee monthly CTC is Rs. 20000.
Compensation Package Offered :
Sr. No Head Amount
(Monthly)
1 Basic Salary 10000
2 Housing Rent Allowance- 40% of Basic 4000
3 Transportation Allowance 1500
4 Medical Allownace 200
5 Special Allowance 2520
Gross Salary 19220
6 P.F (12% on Maximum 6500)-Employer's Cont 780
CTC (Cost To Company) 20000
In that case if employee is willing to contribute in PF so from 12% of 10000 will be deducted from employee part and he/she will get 18020 Rs take home.
If there is a provision in the company for those employee whose basic+da is more than 6500, they can fill declaration form at the time of joining and save their themselves from deduction.
Q.1 Is that employee is eligible to get 20000 take home from the very first month salary or not ?
From India, Jaipur
1If an employee monthly CTC is Rs. 20000.
Compensation Package Offered :
Sr. No Head Amount
(Monthly)
1 Basic Salary 10000
2 Housing Rent Allowance- 40% of Basic 4000
3 Transportation Allowance 1500
4 Medical Allownace 200
5 Special Allowance 2520
Gross Salary 19220
6 P.F (12% on Maximum 6500)-Employer's Cont 780
CTC (Cost To Company) 20000
In that case if employee is willing to contribute in PF so from 12% of 10000 will be deducted from employee part and he/she will get 18020 Rs take home.
If there is a provision in the company for those employee whose basic+da is more than 6500, they can fill declaration form at the time of joining and save their themselves from deduction.
Q.1 Is that employee is eligible to get 20000 take home from the very first month salary or not ?
From India, Jaipur
If at all the new employee had PF account in earlier company then even here EPF contribution is must. Else you can take the declaration form and he/she can be exempted
From India, Bangalore
From India, Bangalore
Even after filling that form, Rs. 200 will be deducted from the salary towards PT, may change if working out of Maharashtra State. Also then the Gross will be the CTC and not otherwise....
From India, Mumbai
From India, Mumbai
Hi
Where is the work location? Irrespective of the nativity of the person if the work location is in Maharashtra then PT shall be deducted as per Maharashthra act. If He/She is working in Rajasthan then PT shall be deducted as per Rajasthan PT act
From India, Bangalore
Where is the work location? Irrespective of the nativity of the person if the work location is in Maharashtra then PT shall be deducted as per Maharashthra act. If He/She is working in Rajasthan then PT shall be deducted as per Rajasthan PT act
From India, Bangalore
Cost to Company is their budget/expenditure to employees. Thisi is useful for their calculation. What I feel is that, without reference to CTC you have pay from your gross salary. Employees contribution only 12% on Rs. 6500/-, If all things are OK, then Company contribution is 13.61%; I feel your mixing up CTC with your PF. In fact many companies are showing your contribution and their share to show employee is getting huge salary, then both amounts are deducted from salarytowards PF. I have dealt one case that one contractor showd both PF in salary slip to show min wage and then in deduction company deducted its share from the salary. Of course employees share deduction is normal. PF Officers handled Contractor in appropriate way . Please do not rely up CTC. Dear Readers is there any genuinity in this Anonymous message.
From India, Nellore
From India, Nellore
Dear friend,
CTC:
As others pointed out CTC is a sum total of what is payable to an employee on month to month as salary (ie.called cash cost) plus 'non cash costs' such as i) employer's contribution to employees' EPF a/cs ii) gratuity 'accrued but not due' as on that month iii) leave salary etc. which are not payable monthly as a part of salary, but the co. has to incur one day or other in future.
Take Home:
This is a net amount of salary (cash costs) 'accrued and due' comprised of Basic, DA, HRA, Transport Allw, Medical Allw, Spl.Allw) minus Prof.Tax, Income Tax (TDS) if applicable, EPF-Employees' monthly subscription @ 12% on on Basic+DA.which is 'Net amount/Take Home pay'.
So CTC and Take Home pay are two diff. amounts and hence he cannot take home Rs.20,000/- which is not the 'Net amount'.
From India, Bangalore
CTC:
As others pointed out CTC is a sum total of what is payable to an employee on month to month as salary (ie.called cash cost) plus 'non cash costs' such as i) employer's contribution to employees' EPF a/cs ii) gratuity 'accrued but not due' as on that month iii) leave salary etc. which are not payable monthly as a part of salary, but the co. has to incur one day or other in future.
Take Home:
This is a net amount of salary (cash costs) 'accrued and due' comprised of Basic, DA, HRA, Transport Allw, Medical Allw, Spl.Allw) minus Prof.Tax, Income Tax (TDS) if applicable, EPF-Employees' monthly subscription @ 12% on on Basic+DA.which is 'Net amount/Take Home pay'.
So CTC and Take Home pay are two diff. amounts and hence he cannot take home Rs.20,000/- which is not the 'Net amount'.
From India, Bangalore
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Employee Appraisal Form new.doc