General PF & Gratuity rules

choclate10jan · #1 25-11-2007, 09:29 PM

Hi All ,
Can anyone help me out with the understanding of general PF deductions rules ; if we say that salary of an employee is on CTC basis than how much percentage of PF shall be deducted ?

Similarly , gratuity ; when we say that salary is on CTC basis than is it right to deduct Gratuity from the very first month of joining of a candidate ?

riyarodeshia · #2 25-11-2007, 10:03 PM

seniors plz comment...

bijeshaggarwal · #3 26-11-2007, 12:15 PM

dear pf is always deducted on basic + da at a fixed percentage

and employer also contribute at that rate as for ex

ur salary is basic 5000 da 2000 hra 2000 otherallownace 3000 incentives 4000

ur pf will deducted on rs 5000 at rate 12% ie 600

and same amount will be contributed by ur employer

so ctc will be 5000+2000+2000+3000+4000+600
16600

choclate10jan · #4 26-11-2007, 03:14 PM

Thanks for the reply ,
But in some companies the employer says that in CTC PF rate is 24 % of basic , means both employer & employee contribution will be deducted .
Is it right to deduct both side PF ?

Regards

ruchika_g1 · #5 26-11-2007, 03:26 PM

CTC is the cost to company so it does not include any deductions made on behalf of the employee...like employee contribution to PF, TDS,etc. So basically to add clarity to the structure some companies mention 24% PF contributions...to avoid confusion later.

riyarodeshia · #6 26-11-2007, 10:27 PM

Can any one tell me hw we devide salary into the structure of
basic
hra
da
convence
etc...

is there any hardcore rule or we can set all these as per company's preference....

vishwa2 · #7 27-11-2007, 05:56 AM

Hi it is company specific.

i am uploading one of the file available in this forum for your reference.
rgds
vishwanath

Arti_Chopra · #8 29-11-2007, 03:23 PM

Dear Mr. Vishwanath,

I study the salary sheet send by u pls. explain me wht is PT. Why u take uniform allowance Rs.1000/- & medical allowance 650/-

Regards,

Arti Chopra

Snigdha Manasa · #9 26-06-2009, 02:55 PM

Pt is professional Tax I believe

Snigdha Manasa · #10 26-06-2009, 02:57 PM

professional Tax

Salary Tax. Rs

5001-6000 60

6001-10000 80

10001-15000 100

15001-20000 150

20000 ABOVE 200