Dear All, i wanted to know that PF Employer Share is Contribute by Employer or Employee. Because some company show both the contribute from Employee. it that write or not? Regards Jesmin
From India, Surat
2From India, Surat
Most private companies offer compensation on a CTC basis, right. In this case, both contributions are part of CTC and it will not make any difference whether Employee Contribution is different from Employer Contribution. Even you can find Gratuity as part of CTC
From India, Bangalore
From India, Bangalore
Hi Jesmin, If both the contributions are deducted from Gross then it is wrong. Please check.
From India, Hyderabad
From India, Hyderabad
Hi, Jasmin first see the Salary break up and then see Employer share also calculated on Same Basic as calculated from employee, if its in this process then its wrong way.
From India, Mumbai
From India, Mumbai
PF employer Share is mentioned by private companies in the CTC letter separately.
The PF share of the employee is DEDUCTED from the employee's earnings and hence is not shown separately on the CTC but is part of your earning and other allowances.
Both are deducted @12% of basic salary unless employee decides to contribute more from his pocket.
I have written a detailed article about how the PF's (employer and employee) are shown on salary slip and CTC letter with respect to their deduction. You may find it useful.
EPF vs PPF Vs VPF With Respect To CTC And Salary Slip - AM22 Tech
From India, Delhi
The PF share of the employee is DEDUCTED from the employee's earnings and hence is not shown separately on the CTC but is part of your earning and other allowances.
Both are deducted @12% of basic salary unless employee decides to contribute more from his pocket.
I have written a detailed article about how the PF's (employer and employee) are shown on salary slip and CTC letter with respect to their deduction. You may find it useful.
EPF vs PPF Vs VPF With Respect To CTC And Salary Slip - AM22 Tech
From India, Delhi
Please refer to Para 31 of the EPF Scheme. It is as follows:
" 31. Employer’s share not to be deducted from the members
Notwithstanding any contract to the contrary the employer shall not be
entitled to deduct the employer’s contribution from the wage of a member or
otherwise to recover it from him."
From India, Madras
" 31. Employer’s share not to be deducted from the members
Notwithstanding any contract to the contrary the employer shall not be
entitled to deduct the employer’s contribution from the wage of a member or
otherwise to recover it from him."
From India, Madras
Thank you all for your helpful reply. if both the contribution deducted from our salary then what should i do.? i have to tell my HR or Complain some where.?
From India, Surat
From India, Surat
Hi, directly don’t think about that, if both the contributions is deducting from Employe then you clear with your HR. your concept will be clear.
From India, Mumbai
From India, Mumbai
Please understand that there is difference in "Gross" salary and "CTC". The gross salary is the salary that you earn and pf is deducted on the basic component of the earned salary. The law prohibits deduction on employer contribution from your salary.
e.g. suppose you have earned 4000 as basic, then Rs 480 will be deducted from your salary. The employer has to pay Rs. 480.
The employer cannot deduct Rs960 from your salary.
The CTC is COST TO COPMANY and includes all the cost incurred by the company by hiring you. It will include your Gross salary,
PF payable by employer, ESIC (employer component), Bonus, Gratuity, Transport facility, etc. It will be clear that company can include any components that they incur as cost in calculating your CTC.
Hence if the PF payable by employer is shown in CTC it will not violet any law.
From India, Panaji
e.g. suppose you have earned 4000 as basic, then Rs 480 will be deducted from your salary. The employer has to pay Rs. 480.
The employer cannot deduct Rs960 from your salary.
The CTC is COST TO COPMANY and includes all the cost incurred by the company by hiring you. It will include your Gross salary,
PF payable by employer, ESIC (employer component), Bonus, Gratuity, Transport facility, etc. It will be clear that company can include any components that they incur as cost in calculating your CTC.
Hence if the PF payable by employer is shown in CTC it will not violet any law.
From India, Panaji
CTC is a financial term - Cost to the company: that means whatever expenses done on employee are needed to be shown in CTC. PF, Gratuity and other legal expenses estimated are also to be considered.
Negotiate on net Take home salary or gross salary for avoiding confusion and understanding best offer .
IF you have accepted offer on CTC then organization PF contribution is also considered and that is why legal action can not be taken against the employer.
From India, Mumbai
Negotiate on net Take home salary or gross salary for avoiding confusion and understanding best offer .
IF you have accepted offer on CTC then organization PF contribution is also considered and that is why legal action can not be taken against the employer.
From India, Mumbai
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CTC-Salary Break Up.pdf
CTC Break up.xls