CTC includes total cost that a company bears for a particular employee so Employer’s PF & ESIC contribution is included in CTC.
From India, Pune
From India, Pune
Dear Yohan,
You need to first understand what is CTC. It is the total cost to the company, be it salary, PF, ESI. Bonus, Gratuity, Conveyance and various other allowances. Whatever goes out of the company's coffers towards employing an employee is that employees cost to company (CTC).
Calculations of the amounts deducted towards PF and ESI etc are not based on the CTC but are calculated as a percentage of the wages which are a part of the employees salary.
Both employers and employees contributions towards PF etc are deducted as a percentage of 'Minimum Wages' of the employee, which form a part of his salary and the total adds up-to the employee's CTC. It is usually expressed in terms of the annual cost and hence the monthly cost is multiplied by 12 to arrive at the annual CTC.
I hope it clears the doubt.
Regards.
Aye.
Colonel Gahlot
'TRURECRUIT' Placement Consultancy
09810081197
From India, Delhi
26You need to first understand what is CTC. It is the total cost to the company, be it salary, PF, ESI. Bonus, Gratuity, Conveyance and various other allowances. Whatever goes out of the company's coffers towards employing an employee is that employees cost to company (CTC).
Calculations of the amounts deducted towards PF and ESI etc are not based on the CTC but are calculated as a percentage of the wages which are a part of the employees salary.
Both employers and employees contributions towards PF etc are deducted as a percentage of 'Minimum Wages' of the employee, which form a part of his salary and the total adds up-to the employee's CTC. It is usually expressed in terms of the annual cost and hence the monthly cost is multiplied by 12 to arrive at the annual CTC.
I hope it clears the doubt.
Regards.
Aye.
Colonel Gahlot
'TRURECRUIT' Placement Consultancy
09810081197
From India, Delhi
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