Provident Fund Calculation

Hi Priyanka,

CTC Means Cost to Company in this concept company includs P.F Contirbuions both employee and employer here there is no confusion. Now a days every company is following the CTC concept.

earlier every company use to pay ( employer contribution ) P.F with their own and they won't touch the salary of employee . But these days company's to avoid of Employer P.F Contirbution they simply throwing on employees on the name of CTC .

Regars,

Hi all, like to know whether washing allowance is CTC under the provident fund Act (Tamil Nadu). Thanks & Regards, Force1services

Hi Priyanka,

Now many companies using CTC concept. The calculation is as under:
CTC - 12% of basic(Employer part)=Gross Salary
Gross Salary - 12% of basic (Employee part)
Rest 1.61% employer has to pay.
you can convince employee at the time of joining that the employer part of PF is included in their CTC.
For employee this is loss of 12%, but companies are using this concept, and they are not legally wrong.
In my company we have given PF facility to all, it means for those also whose basic is more than 6500/- but 6500/- is cut off basic. it means if A has a basic of 10000/- he will have to pay 780/-(12% of 6500) as employee and the same as employer part.
Please revert for any clarification.

Sanjeev

hi priyanka,

CTC means Cost ot company

but pf is employee and employer contribution is expended the employee only

employer is safe side of the company