Hi all,
Please i need urgent advice, i recently got an offer , i saw salary breakup and i found it weird
Company is adding Companies Contribution to PF component in my CTC
i have offered 7.7 lakh package but the breakup seems they are offering me 7.18 lakh package per annum and rest amount is distributed in additional components
My question is , is it allowed to add companies contribution to PF component to CTC, or company HR is playing smart with me by adding this component to CTC just to increase my annual CTC to 7.7 ???
And another question is if it is allowed to add this component then, out of my monthly salary there will be cutting of both my share + employer's share from my salary ????
2 times pf will get deducted from my Monthly salary ??? what will be exact in hand amount ??
Please check attachment, Salary breakup is attached.
Please give me suggestion ASAP, i need to decide whether to accept offer or not.
From India, Lonavla
Please i need urgent advice, i recently got an offer , i saw salary breakup and i found it weird
Company is adding Companies Contribution to PF component in my CTC
i have offered 7.7 lakh package but the breakup seems they are offering me 7.18 lakh package per annum and rest amount is distributed in additional components
My question is , is it allowed to add companies contribution to PF component to CTC, or company HR is playing smart with me by adding this component to CTC just to increase my annual CTC to 7.7 ???
And another question is if it is allowed to add this component then, out of my monthly salary there will be cutting of both my share + employer's share from my salary ????
2 times pf will get deducted from my Monthly salary ??? what will be exact in hand amount ??
Please check attachment, Salary breakup is attached.
Please give me suggestion ASAP, i need to decide whether to accept offer or not.
From India, Lonavla
What company adds to CTC is beyond your control?
The company sees cost to company when they hire an employee, what employee sees is what he gets in hand and savings like PF etc,
What an employee gets is Basic+DA+ allowances after reducing PF (Employee share),ESIC(employee share) if any,IT, etc.
Analyse your CTC offer carefully and sgregate what you will get monthly and what kind of savings is done like PF and medical care like ESIc etc.
From India, Pune
3124The company sees cost to company when they hire an employee, what employee sees is what he gets in hand and savings like PF etc,
What an employee gets is Basic+DA+ allowances after reducing PF (Employee share),ESIC(employee share) if any,IT, etc.
Analyse your CTC offer carefully and sgregate what you will get monthly and what kind of savings is done like PF and medical care like ESIc etc.
From India, Pune
C.T.C is a mere accounting tool employed by some companies in India and African countries to arrive at the total cost incurred by the employer per employee per annum in all respects. The inherent purpose being the advance determination of the total cost of employment of an employee per year including the cost of retention. However, it is used by employers strategically to lure a job aspirant in the matter of salary negotiations prior to appointment. Therefore, in the early phase of salary negotiation itself, the prospective employee should clearly indicate his expected gross salary before the admissible statutory deductions. He should simply ignore the statutory contributions made by the employer towards fringe benefits. In my opinion, CTC can not have any legal implications unless it forms part of the contract of employment. By and large, every prospective employee should meticulously analyze the salary offer and make sure what he would have on hand every month after his statutory deductibles only as advised by Mr. Rao.
From India, Salem
From India, Salem
Dear Anonymous
I have gone through the CTC break up sheet the fat is as under.
1. Company has shown company's pF contribution as part of CTC. - So your contribution and company's contribution will be deducted from your monthly salary @25% of Basic.
2. Company has also mentioned Gratuity as part of CTC, which is notionally shown as earning but since company will be depositing that amount towards your Gratuity fund your annual earning shall be deducted@ 4.81% which comes to Rs. 1071/yr., while in your sheet it has been mentioned Rs.12,852/ Please check with them.
Otherwise the mentioned break up is both legal and logical as per prevalent practices, subject to agreement of both the party i.e. employee and employer.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
I have gone through the CTC break up sheet the fat is as under.
1. Company has shown company's pF contribution as part of CTC. - So your contribution and company's contribution will be deducted from your monthly salary @25% of Basic.
2. Company has also mentioned Gratuity as part of CTC, which is notionally shown as earning but since company will be depositing that amount towards your Gratuity fund your annual earning shall be deducted@ 4.81% which comes to Rs. 1071/yr., while in your sheet it has been mentioned Rs.12,852/ Please check with them.
Otherwise the mentioned break up is both legal and logical as per prevalent practices, subject to agreement of both the party i.e. employee and employer.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
Hi
CTC is nothing but Cost to the Company. As it denotes the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to know the details and if there is any issue with regards to the latter you can always ask for explanation with the HR.
Thanks and Regards
From India, Hyderabad
CTC is nothing but Cost to the Company. As it denotes the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to know the details and if there is any issue with regards to the latter you can always ask for explanation with the HR.
Thanks and Regards
From India, Hyderabad
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