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In CTC Company will deduct double payment for PF is it Currect or Not?
yes I do agree with Anujj because CTC means Cost to the company on the particular employee.
these days Majority companies especially Software companies are following this concept. in this concept both contributions Employee & Employer will be shown as a part of CTC ,in this aspect there is no mistake.
actually earlier there is no CTC concept so by default employer has to pay his contribution other than employee salary that is why it is calling Employer Contribution. still some companies are following the same but they are very few.
these days Majority companies especially Software companies are following this concept. in this concept both contributions Employee & Employer will be shown as a part of CTC ,in this aspect there is no mistake.
actually earlier there is no CTC concept so by default employer has to pay his contribution other than employee salary that is why it is calling Employer Contribution. still some companies are following the same but they are very few.
Dear All, Both share of PF are part of CTC, but employee share of PF/ESI is deducted from gross income of employee. Anyways employee will effected Thanks Vivek Mishra
NO. Including the employee' share of PF contribution in the CTC is unethical and most inappropriate. Employee’s share of PF contribution is not a cost to the Co. Vasant Nair
Dear Vasant
Not agreeing with you. When you talk of CTC it is total amount which is Cost to Company and not take home.
The PF paid by the company is for you (Amount paid to you) and not for the company and YOU will receive that amount. Hence that is the cost to company for keeping you/ hiring you.
So when calculating CTC it has to take into account all the expenditure that company will incur on you - (may also include housing, telephone bills, transportation etc - but usually many dont - as they show these expenditure directly to Govt of India and not on employees head)
Dear SReddy - As already discussed by many - it is correct when talking of CTC and not when talking of take home salary.
Regards
Not agreeing with you. When you talk of CTC it is total amount which is Cost to Company and not take home.
The PF paid by the company is for you (Amount paid to you) and not for the company and YOU will receive that amount. Hence that is the cost to company for keeping you/ hiring you.
So when calculating CTC it has to take into account all the expenditure that company will incur on you - (may also include housing, telephone bills, transportation etc - but usually many dont - as they show these expenditure directly to Govt of India and not on employees head)
Dear SReddy - As already discussed by many - it is correct when talking of CTC and not when talking of take home salary.
Regards
Dear all Cost to the company means all the cost incurred over the employee. so hr should diduct Both side contribition from gross salary. With Regard! Reetesh Kumar Singh Hr Executive ITSL Patna
As far as PF is concerned, under the EPF&MP Act 1952, Contrbutions are to be deducted and deposited on the Wages paid or payable. Employer can not deduct Employer,s share from the wages of the employee. For definition of wages ,Section 2 of the Act may be seen or website of EPFO be browsed at EPFO
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Listed Under employee pf Country-India employer contribution cost to company hr knowledge take home salary workmen compensation esic contribution pf contribution calculation of ctc pf employer hr material City-India-Hyderabad
CTC Calculator.xls
