How To Show Employer PF & ESIC Cont In CTC?/ - CiteHR
Assistant Manager Human Resources
Recruitment, Labour Laws, Skill Mapping,
Senior Hr Associate
+2 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear Senior,
Can we show employer's PF and ESIC contribution in appointment letter of an employee?
If not then How can we document it and finalise the CTC of an employee which will include PF and ESIC of employer contribution???
Deepak Pawar

Yes, you can show them in appointment letter. Most of the company puts company PF and ESI contribution in CTC of employee.....
For further reading:
White Eagle: ESI: On which compontens contribution is payable
White Eagle: Provident fund and Overtime Allowances

Dear Deepak, Employer PF and ESI contribution forms a part of employee CTC. Generally it is shown on salary annexure.
But how it reflects the salary slip? because the employee may get confused if we do not mention the PF & ESI deductions which will be made from his CTC (both sides).
Dear Pawar,
You can prepare your salary annexure showing the salary components along with PF, ESI, Lta, Medical Insurance and others as provided by your organization.
Dear Jayanthikiran,
You may add two extra column as employer PF and ESI contribution in your pay slip format.

Ok here you go ..
I'm not sure about ESi one..but Pf here it is .
Monthly Annually.
1. Basic Salary
2. House Rental Allowance
3. Special Allowance
4. Conveyance Allowance
5. Telephone/Internet Allowance
6. Food allowance _________________________
Gross Salary __________________________
Quarterly Components
1. PF (Employer contribution)
2. Bonus
3. Leave Travel Allowance
4. Project Allowance
5. Medical Allowance
Total Cost to Company CTC ___________________
Hope this solves your query.
I'm not sure with the ESi thing, please check that out.

Gross salary is the remuneration of employee and adding to employer contribution it makes CTC. generally salary slip is for gross salary only, so no need to show the employer contribution in salary slip. Also if employee will not pay PF&ESIC then off course employer also need not to pay. so it is understood if only employee portion is mentioned in pay slip.
however, if you want to add it you can. but CTC is a new concept which is no where mentioned or laid down in statutory documents so companies do not show that in salary slip. it is mentioned in salary annexure only once issuing appointment letter and increment letters to employees to make it clear.
Seniors pls comment

Dear , As formulated Salary structure by me where i am working as All PF & ESIC show in Salary Structure as CTC. CTC Amount is Different ,Gross Salary is Different & also Net Amount is different.
Dear All, Thanks for the reply. The information shared by you are realy helpful. If anybody else has any other information shared I would really be thankful. Regards, Deepak Pawar
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™