Dear All,
I have a query regarding PF contribution. Let's consider an example:
Below are the salary/increment details of an employee "X" in ABC (a third party) hired by a company through a third party:
- Basic Salary: 43716
- HRA: 17484
- Conveyance: 19200
- Telephone Allowance: 4800
- Special Allowance: 74844
- Local Conveyance: 12000
- Employer's Contribution To PF: 18552
- ESIC: 8184
- Total Annual CTC: 198780
Dear All,
I want to inquire whether it is legal or illegal to add the employer's contribution to PF in the gross CTC. As far as I understand, employee's and employer's contributions should be equally shared for PF. However, in this case, the company is providing CTC (with the addition of PF contribution from the employer). How justified is this? I kindly request your guidance or advice on this matter at the earliest.
Thank you.
From India, Ahmedabad
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2I have a query regarding PF contribution. Let's consider an example:
Below are the salary/increment details of an employee "X" in ABC (a third party) hired by a company through a third party:
- Basic Salary: 43716
- HRA: 17484
- Conveyance: 19200
- Telephone Allowance: 4800
- Special Allowance: 74844
- Local Conveyance: 12000
- Employer's Contribution To PF: 18552
- ESIC: 8184
- Total Annual CTC: 198780
Dear All,
I want to inquire whether it is legal or illegal to add the employer's contribution to PF in the gross CTC. As far as I understand, employee's and employer's contributions should be equally shared for PF. However, in this case, the company is providing CTC (with the addition of PF contribution from the employer). How justified is this? I kindly request your guidance or advice on this matter at the earliest.
Thank you.
From India, Ahmedabad
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Hi,
This has already been discussed in previous topics, and members have shared their views. Whatever employers spend on employees is added to the CTC. It is a tactic used by employers. It is wrong if it is added to the gross salary of the employee.
From India, Madras
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This has already been discussed in previous topics, and members have shared their views. Whatever employers spend on employees is added to the CTC. It is a tactic used by employers. It is wrong if it is added to the gross salary of the employee.
From India, Madras
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Dear Friend, Your CTC correctly calculated by an employer and CTC stand for (Cost to Company), Whatever employer paying to employee that all comes under CTC. (PF, ESIC,Graduity,Bonus...)
From India, Mumbai
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From India, Mumbai
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Dear Sir V.M. Lakshminarayanan,
PF is added to the gross salary, as you can see, there is a gross addition of 198780 with PF contribution by the employer. That's why I'm asking, is the tactic used by the employer/third-party agency legal or not?
From India, Ahmedabad
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PF is added to the gross salary, as you can see, there is a gross addition of 198780 with PF contribution by the employer. That's why I'm asking, is the tactic used by the employer/third-party agency legal or not?
From India, Ahmedabad
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Dear Friend,
Please understand the difference between Gross and CTC. Add all your components (Gross = Basic + HRA + Conveyance + Telephone Allowance + Special Allowances + Local Conveyance). CTC = Gross + Employer contribution. In your case, your gross amount is 172,044 (monthly 14,337).
From India, Mumbai
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Please understand the difference between Gross and CTC. Add all your components (Gross = Basic + HRA + Conveyance + Telephone Allowance + Special Allowances + Local Conveyance). CTC = Gross + Employer contribution. In your case, your gross amount is 172,044 (monthly 14,337).
From India, Mumbai
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