Hello dear friends, Can any body tell me is employer’s contribution towards PF of the employee included in CTC???? Looking forward you valuable answers.....!!!!
From India, Visakhapatnam
From India, Visakhapatnam
Hi Singh, Employee and Employer PF contribution is included in the CTC, Just for understanding even variable components are included in the stack sheet (CTC) Have a nice weekend Chary
From India, Bangalore
From India, Bangalore
Dear SK,
CTC means COSTS TO COMPANY"
Normally all Corporates budget the cost of an employee, before engaging them, so that they are aware of the actual costs which they would incur upon an employee, when they would engage him.
This would include the employees pay package (Basic, HRA, Conveyance, Medical and other Allowances). In addition to this there would be additional costs upon the Company, such as Employers Provident Contribution, Gratuity Provision, Statutory Bonus Provision. These costs are the liability upon the Company, and hence shown in the entitlement sheet to the appointment letter. These costs would not be reflected in your salary slips, as these are Company costs.
Morever addition of these costs to the Entitlement Sheet also inflates the figures in the CTC, for which may employees do fall prey to.
Normally these costs are budgetted to each individual dpeartments which hire such employee, so that the costs verses department output (Productivity) can be analysed.
From India, Pune
CTC means COSTS TO COMPANY"
Normally all Corporates budget the cost of an employee, before engaging them, so that they are aware of the actual costs which they would incur upon an employee, when they would engage him.
This would include the employees pay package (Basic, HRA, Conveyance, Medical and other Allowances). In addition to this there would be additional costs upon the Company, such as Employers Provident Contribution, Gratuity Provision, Statutory Bonus Provision. These costs are the liability upon the Company, and hence shown in the entitlement sheet to the appointment letter. These costs would not be reflected in your salary slips, as these are Company costs.
Morever addition of these costs to the Entitlement Sheet also inflates the figures in the CTC, for which may employees do fall prey to.
Normally these costs are budgetted to each individual dpeartments which hire such employee, so that the costs verses department output (Productivity) can be analysed.
From India, Pune
yes offcourse employer contribution towards pf is part of employee ctc bcs its riemburse to employee only at the time of withdrawl\
From India, Delhi
From India, Delhi
Can anybody please guide me....what all documents are required for provident fund in Hong kong?
From India, Delhi
From India, Delhi
Dear Friend,
In my view, the employer's contribution should not be included in CTC because the P.F is only a benefit given to an employee and which is also a statutory related one.
On the other hand, the purpose of enrolling in Provident Fund is only to derive the benefit as per the P.F. Act and only in this P.F the employee is getting double the share by way of employer's contribution too which is accumulated in an employee's P.F. account.
Secondly, if an employer wants to contribute his share from the employee's money then there is no meaning in making the employee getting enrolled under P.F. resulting in long awaiting for withdrawal by overcoming a month's process. Instead the employee himself can make a smart investment by saving those contributions (both) in a recurring deposit account in which he can withdraw whenever he is in need of it rather than approaching his old employer for withdrawing the same if it is accumulated under P.F.
Please correct me if I am wrong.
Thanks and Regards,
T.PRABHAKAR.
From India, Madras
In my view, the employer's contribution should not be included in CTC because the P.F is only a benefit given to an employee and which is also a statutory related one.
On the other hand, the purpose of enrolling in Provident Fund is only to derive the benefit as per the P.F. Act and only in this P.F the employee is getting double the share by way of employer's contribution too which is accumulated in an employee's P.F. account.
Secondly, if an employer wants to contribute his share from the employee's money then there is no meaning in making the employee getting enrolled under P.F. resulting in long awaiting for withdrawal by overcoming a month's process. Instead the employee himself can make a smart investment by saving those contributions (both) in a recurring deposit account in which he can withdraw whenever he is in need of it rather than approaching his old employer for withdrawing the same if it is accumulated under P.F.
Please correct me if I am wrong.
Thanks and Regards,
T.PRABHAKAR.
From India, Madras
Dear SK,
CTC (Cost to Company) is the cost incurred on an employee. Generally, when a person offered employment by a company, it is CTC which is negotiated between company and person and only after he/she agreed on it the company gives the employment. So, it is an agreement between company and employee. Ofcourse, employer cannot deduct his share of PF from the salary of employee and hence the deduction employer's share of PF will never be reflected in salary slips. So, it must be understood what will be your salary and CTC at the time of joining. However, CTC also consists of benefits provided by the company to an employee and so it is a inflated figure for your salary.
From India, Delhi
CTC (Cost to Company) is the cost incurred on an employee. Generally, when a person offered employment by a company, it is CTC which is negotiated between company and person and only after he/she agreed on it the company gives the employment. So, it is an agreement between company and employee. Ofcourse, employer cannot deduct his share of PF from the salary of employee and hence the deduction employer's share of PF will never be reflected in salary slips. So, it must be understood what will be your salary and CTC at the time of joining. However, CTC also consists of benefits provided by the company to an employee and so it is a inflated figure for your salary.
From India, Delhi
Hi Mr. Singh, Yes. Employer’s PF Contribution (12% of Basic Salary ) and ESIC Contribution (4.75% of gross salary ) will be added in the CTC Calculation. Rgds, Prabha
From India, Madras
From India, Madras
HelloYes PF from employers contribution comes in CTC,but from employees side do not calculate in CTC
From India, Gurgaon
From India, Gurgaon
Yes, PF contribution of Employer's is included in CTC (Cost to Company).
CTC breakup as per below :
Basaic 10000.00
HRA (50%) 5000.00
Conveyance 800.00
Medical Allowance 1250.00
Gross Salary 17050.00
Add : PF @ 12% of Basic (8.25+3.75) 1200.00
Add : ESIC Cont. @ 4.75% NIL
(If Gross salary does not more then Rs. 10,000/- )
Current CTC (Gross Salary + Cont. of Empr') 18250.00
When salary in hand will be caluculated then on.y PF & ESIC of employee's contibution will be deducted. as exm.....
Gross Salary 17050.00
Less : PF @ 12% of Basic 1200.00
Salary in Hand 15850.00
FACTS is that "
CTC Rs. 18250/-
Gross Salary Rs. 17050/-
Salary in Hand Rs. 15850/-
Regards,
Gyasuddin
From India, Jalandhar
CTC breakup as per below :
Basaic 10000.00
HRA (50%) 5000.00
Conveyance 800.00
Medical Allowance 1250.00
Gross Salary 17050.00
Add : PF @ 12% of Basic (8.25+3.75) 1200.00
Add : ESIC Cont. @ 4.75% NIL
(If Gross salary does not more then Rs. 10,000/- )
Current CTC (Gross Salary + Cont. of Empr') 18250.00
When salary in hand will be caluculated then on.y PF & ESIC of employee's contibution will be deducted. as exm.....
Gross Salary 17050.00
Less : PF @ 12% of Basic 1200.00
Salary in Hand 15850.00
FACTS is that "
CTC Rs. 18250/-
Gross Salary Rs. 17050/-
Salary in Hand Rs. 15850/-
Regards,
Gyasuddin
From India, Jalandhar
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