I am working as an HR Executive in a facility management company. When I joined in March 2014, the CTC offered to me was 129490 (without PF facility). My monthly gross salary was 10315, and the monthly net was 9940 Rs. However, due to a revision in the PF limit, the employer has not revised my CTC; instead, both contributions have been adjusted within the same CTC. Consequently, my monthly gross salary became 9295 (previously 10315), and the monthly net salary is now 7927 Rs (previously 9940 Rs).
I request seniors to let me know if it is a correct practice to follow. My Director says that once the CTC is fixed, it cannot be revised, so the PF adjustment will be within the CTC offered. Kindly guide me if this is correct.
Regards,
Sheetal
From India, Mumbai
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I request seniors to let me know if it is a correct practice to follow. My Director says that once the CTC is fixed, it cannot be revised, so the PF adjustment will be within the CTC offered. Kindly guide me if this is correct.
Regards,
Sheetal
From India, Mumbai
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Seniors plz guide me. I am awaiting your responses. Regards Sheetal
From India, Mumbai
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From India, Mumbai
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The action of your company is illegal.
This has been discussed many times on this forum in the last few months. Wish you had bothered to search the threads on this topic.
CTC is not recognized in law. Only gross salary is recognized. The PF Act very clearly states that the salary of a person cannot be reduced to pay partly or wholly the employer's contribution to PF. While the net salary will go down as the amount of employee's contribution goes up, the employer's contribution cannot be recovered.
The company will be liable to differential wages, penalties, and even possibly criminal prosecution.
From India, Mumbai
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2638This has been discussed many times on this forum in the last few months. Wish you had bothered to search the threads on this topic.
CTC is not recognized in law. Only gross salary is recognized. The PF Act very clearly states that the salary of a person cannot be reduced to pay partly or wholly the employer's contribution to PF. While the net salary will go down as the amount of employee's contribution goes up, the employer's contribution cannot be recovered.
The company will be liable to differential wages, penalties, and even possibly criminal prosecution.
From India, Mumbai
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Salary with TDS Calculation-Fin al Amended for net.xls
Salary-Note.doc