Dear All, Please let me know, if any employees CTC Rs20000/month. Should we have to deduct his PF. If he does not want to deduct PF. Please clear this confusion.
From India, Kolkata
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From India, Kolkata
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Dear Imran,
CTC is a management account formula to assess the overall cost incurred by the employer per employee per annum. Therefore, CTC would include all the costs relating to direct benefits and indirect benefits given to the employee. Statutory Contributions made by the employer to EPF, ESI, Gratuity, etc., in respect of employees form part of the various indirect benefits.
Hence, the applicability and the calculation of statutory benefits like EPF, ESI have to be determined only on the basis of the monthly salary or wages as defined under the respective laws for the purpose. As such, CTC is not a relevant factor in this regard. I would like to request you to go through the EPF Act, 1952, for further clarification in this regard.
From India, Salem
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6185CTC is a management account formula to assess the overall cost incurred by the employer per employee per annum. Therefore, CTC would include all the costs relating to direct benefits and indirect benefits given to the employee. Statutory Contributions made by the employer to EPF, ESI, Gratuity, etc., in respect of employees form part of the various indirect benefits.
Hence, the applicability and the calculation of statutory benefits like EPF, ESI have to be determined only on the basis of the monthly salary or wages as defined under the respective laws for the purpose. As such, CTC is not a relevant factor in this regard. I would like to request you to go through the EPF Act, 1952, for further clarification in this regard.
From India, Salem
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You have the answers in this link: https://www.citehr.com/600843-if-one...above-20k.html
From India, Bangalore
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From India, Bangalore
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