Hi All,
When I had joined my current organization I wasn\'t told that PF deductions(part which is given by company) is also a part of CTC.
And there is a huge discrepancy in what we have been offered in the appointment letters and on the salary slips. When asked from the HR dept. they informed that PF is deducted twice and gratuity is also a part of it but is not mentioned in black and white in the salary slip.
Please suggest....
Regards
From India, Bangalore
When I had joined my current organization I wasn\'t told that PF deductions(part which is given by company) is also a part of CTC.
And there is a huge discrepancy in what we have been offered in the appointment letters and on the salary slips. When asked from the HR dept. they informed that PF is deducted twice and gratuity is also a part of it but is not mentioned in black and white in the salary slip.
Please suggest....
Regards
From India, Bangalore
HI
CTC is bascially the total cost spent by the employer to an employee. CTC includes direct and indirect benefits given to that employee. If the CTC break up has the details, its not an issue and but if it is deducted from the gross wages mentioned in the offer letter which is not acceptable and the employer can't do that.
So anyone who is offered need to check all clause mentioned in the CTC breakup and better option would be by checking your take home out of the break up for better underatanding. Then there wont be any query raised after receiving the first month salary nor payslip.
183CTC is bascially the total cost spent by the employer to an employee. CTC includes direct and indirect benefits given to that employee. If the CTC break up has the details, its not an issue and but if it is deducted from the gross wages mentioned in the offer letter which is not acceptable and the employer can't do that.
So anyone who is offered need to check all clause mentioned in the CTC breakup and better option would be by checking your take home out of the break up for better underatanding. Then there wont be any query raised after receiving the first month salary nor payslip.
Hi!
Almost all salaried people contribute a certain percentage of their salary towards their Employee Provident Fund (EPF) account every month. EPF is an effective tool that helps generate a corpus for life post retirement, you can make a withdrawal from your EPF account for urgent cash requirements.
From India, Delhi
Almost all salaried people contribute a certain percentage of their salary towards their Employee Provident Fund (EPF) account every month. EPF is an effective tool that helps generate a corpus for life post retirement, you can make a withdrawal from your EPF account for urgent cash requirements.
From India, Delhi
Hi,
As CTC is Cost to Company which actually refers to the total cost of employee for the company, so PF contribution done by employer can be a part of CTC, there is nothing wrong in that, but if employer's contribution of PF is a part of your gross salary then it would be treated as wrong practice. Coming to the gratuity, now a days many company's has followed this practice where they put gratuity amount as a part of CTC, which actually they can, but I personally believe that it should not be included in the CTC part as it is paid at the time of exit from company after 5 years not yearly, which is actually a reward of employee's loyalty. Anyways now you can not do anything in this regards except of the fact that next time on wards while accepting the offer go thoroughly to each component of salary mentioned in the offer letter.
Regards
Ashutosh
From India, Kollam
As CTC is Cost to Company which actually refers to the total cost of employee for the company, so PF contribution done by employer can be a part of CTC, there is nothing wrong in that, but if employer's contribution of PF is a part of your gross salary then it would be treated as wrong practice. Coming to the gratuity, now a days many company's has followed this practice where they put gratuity amount as a part of CTC, which actually they can, but I personally believe that it should not be included in the CTC part as it is paid at the time of exit from company after 5 years not yearly, which is actually a reward of employee's loyalty. Anyways now you can not do anything in this regards except of the fact that next time on wards while accepting the offer go thoroughly to each component of salary mentioned in the offer letter.
Regards
Ashutosh
From India, Kollam
In my point of view CTC stands for cost to company which simply means that what is cost beared by an employer for an employee, as far as deduction of epf part is concern employee share can't be taken in calculation of CTC only employer part can be taken for consideration i.e 12% + administrative charges .
Thanks & Regards,
From,
sumit kumar saxena
From India, Ghaziabad
Thanks & Regards,
From,
sumit kumar saxena
From India, Ghaziabad
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PF is to be deducted on canteen allowance - Delhi HC 22.7.2013.pdf