Is it acceptable if the Employer is deducting PF Contributions of both employee & employer from the employee’s salary?
From India, Mumbai
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From India, Mumbai
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If employer’s pf contribution is mentioned in CTC breakup then it’s completely acceptable. If not, then please provide us your entire salary breakup to guide you further. Regards, Manish
From India, Ahmedabad
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49From India, Ahmedabad
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Hi, Legally it is not allowed to deduct PF contribution from both side from the employees salary.
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But, employer’s EPF contribution is mentioned in CTC break up then it’s completely acceptable. Bharath.B. Sr. Hr Executive,
From India, Chennai
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From India, Chennai
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What if the employer's part of contribution is mentioned not as a deduction but as a cost to the company, and only the employee's contribution is noted as a deduction? Is the employer's contribution deducted from the employer's salary?
Please help me with this.
Regards, Shraddha
From India, undefined
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Please help me with this.
Regards, Shraddha
From India, undefined
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Hello Shraddha,
The employer's part of PF contribution is part of the cost to the company, and it is mentioned in the CTC breakup. The employee's part of the contribution will be mentioned in the gross salary. Gross Salary is what the employee earns for payable days for the month, and CTC is what the company bears for that employee.
Regards,
Manish
From India, Ahmedabad
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The employer's part of PF contribution is part of the cost to the company, and it is mentioned in the CTC breakup. The employee's part of the contribution will be mentioned in the gross salary. Gross Salary is what the employee earns for payable days for the month, and CTC is what the company bears for that employee.
Regards,
Manish
From India, Ahmedabad
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Hi Shraddha,
For EPF, the Employee Contribution is 12%, and the Employer Contribution is 13.15%. For ESIC, the Employee Contribution is 1.75%, and the Employer Contribution is 4.75%.
You can show the Employee's contributions like this: EPF 12%, ESIC 1.75% (only the cost-cutting by the Basic).
Then, for Employer Contribution, you can include it in the Company's costs and pay according to their number of working days.
Regards,
Bharath B
Sr. HR Executive
9884930240
From India, Chennai
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For EPF, the Employee Contribution is 12%, and the Employer Contribution is 13.15%. For ESIC, the Employee Contribution is 1.75%, and the Employer Contribution is 4.75%.
You can show the Employee's contributions like this: EPF 12%, ESIC 1.75% (only the cost-cutting by the Basic).
Then, for Employer Contribution, you can include it in the Company's costs and pay according to their number of working days.
Regards,
Bharath B
Sr. HR Executive
9884930240
From India, Chennai
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Dear members,
Let me explain the matter in detail. All the above comments can be true; that depends on what the gross payable salary is considered by the employer. The CTC sheet is generally split into two parts:
1 - Month Payable Salary (Containing all payable emoluments like Basic, DA, HRA, Allowances, Incentives, etc., of which only deductions are made like PF, ESI, PT, Absent days, advance, etc.).
2 - Gross Salary (containing employer's contributions towards PF, ESI, PT, Annual Bonus, etc.).
While processing the salary, if No. 1 salary is considered, then employer PF contribution should not be deducted. However, if the gross salary processed as per No. 2, then employer PF Contribution can be deducted. I would like to give the proper breakup of your CTC and detail of your monthly salary so that fellow members can provide correct and desirable comments on it.
From India, Delhi
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Let me explain the matter in detail. All the above comments can be true; that depends on what the gross payable salary is considered by the employer. The CTC sheet is generally split into two parts:
1 - Month Payable Salary (Containing all payable emoluments like Basic, DA, HRA, Allowances, Incentives, etc., of which only deductions are made like PF, ESI, PT, Absent days, advance, etc.).
2 - Gross Salary (containing employer's contributions towards PF, ESI, PT, Annual Bonus, etc.).
While processing the salary, if No. 1 salary is considered, then employer PF contribution should not be deducted. However, if the gross salary processed as per No. 2, then employer PF Contribution can be deducted. I would like to give the proper breakup of your CTC and detail of your monthly salary so that fellow members can provide correct and desirable comments on it.
From India, Delhi
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