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It has been observed that most companies are now following a CTC system which absolves the said company from paying the obligatory PF contribution. With the CTC system the entire PF amount is being borne by the individual employee. When and how did this change come about?

Is it legal for companies to float 'Trusts' of their own, to manage provident funds?

It is also observed that the Basic wage is being split into various allowance components and does nt have any variable DA in the pay slip. Is this permitted?

Explanations when called for by the employee/s was addressed as follows: basic was split to facilitate employees lower income tax and other statutory deductions.

By reducing the minimum wages employees take a hit on the gratuity pay out also.

The EPFO in its letter 23-5-2011 'Splitting of minimum wages for the purpose of PF contribution not permissible" cited the Hnbl High Court Kartanaka/ Supreme Court splitting as a 'subterfuge' is not permitted .Employee/s given to understand that there is a stay on this order?

What happens to the retiral benefits while this is being decided by the Courts?

Are IETS/BPO/KPO exempt from basic wages act? or are they given any 'concessions' like subsidised Land/Power/infra etc when they set up shop in the early 2000?

Thank You

M.G.Peters
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It is inhuman, and insulting to belittle and treat people with disdain and utter disrespect with total disregard for human dignity of labor. I wonder how companies that profess qualities like Integrity could endeavor to be devoid of human respect. As I am due to retire shortly I Would appreciate a speedy reply from you Sir/s.
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