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Dear Sandeep,
CTC design two way--------
1.CTC known as gross salary.
2.Gross salary known as CTC.
Now thing is that which way you are designing the CTC,In both case the basic componet will deffer.
In firsat case it must be consider 40% of CTC is basic component.
In last case it will be 45% of Gross salary, is basic component.

Dont know how people attain professional degrees without aquinting the required knowlege in the particular subject. Nothing harsh on anyone, however my personal feeling is that people should get a fairly handsome onboard training on job to make them feel the crux/systems/policies & procedures
Hello Sujata,

First understand that there are two way contribution towards EPF. One is employee's contribution other forms employer's contribution. Again there are few employees who fall under mandatory contribution slab and other falls under optional. Depending upon your company policy you can make it mandate for all employees taking into consideration their net pay is not getting affected or their benefit towards enrolling in EPF. For eg. employee at the age of 56 who has never enrolled in EPF will never benefit if you try and enroll him at this age. So study your employee's need properly before doing it mandatory to for everyone.

Coming back to contribution EPF is bandatory for those whose BASIC salary component is <=15000 per month.
Employee contribution is 12 % of basic.
Eg: If employee draws a basic salary of 7000 then, Rs.840 will be deucted from his gross pay towards EPF.
Note: Also note the ceiling limit for EPF calculation remains Rs. 15000 as basic pay. To make you understand take an employee whose basic pay is 20000/- per month. He has voluntarily opted for EPF then, his EPF contribution will be calculated on Rs. 15000 basic pay as this forms the ceiling amount. Deducted amount would be Rs. 1800/-(which forms 12 % of 15000). Depending on company policy you can raise this ceiling to actual basic of an employee but it's not mandatory.

Now comes employer contribution:
Employer overall contribute 13.61% of basic pay towards EPF.
Now this 13.61% is biforcated as below.
8.33% towards EPS i.e. Employee Pension Scheme.
3.67% towards EPF i.e. Employee Provident Funds.
1.10% is the admin charges of PF
0.5% is towards EDLIS i.e. Employee Deposit Linked Insurance Scheme.
0.01% towards EDLI admin charges.


ESI is mandatory for employees with gross pay <=Rs 15000 per month.
Again a 2 way contribution.
Employee contributes 1.75% of gross earning per month. Whereas employer contributed 4.75% of employees gross earning.
On PT, For maharashtra it's as below:
Its nil for gross earning <=7500 per month
Rs. 2100 annual for gross earning <=10000, but >7500 per month (which makes Rs 175 pm)
Rs. 2500 annual for gross earning >10000 (Rs. 200 per month and 300 in feb)

I am working as sales coordinator, for a Six months probation and leaves are not allotted to me so i am getting salary by cutting my leaves from my basic pay amount
I just want to know that cutting of salary from Basic pay is it right or wrong ?

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