Labour Law & Hr Consultant
Insolvency N Gst Professional
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The company sees cost to company when they hire an employee, what employee sees is what he gets in hand and savings like PF etc,
What an employee gets is Basic+DA+ allowances after reducing PF (Employee share),ESIC(employee share) if any,IT, etc.
Analyse your CTC offer carefully and sgregate what you will get monthly and what kind of savings is done like PF and medical care like ESIc etc.
I have gone through the CTC break up sheet the fat is as under.
1. Company has shown company's pF contribution as part of CTC. - So your contribution and company's contribution will be deducted from your monthly salary @25% of Basic.
2. Company has also mentioned Gratuity as part of CTC, which is notionally shown as earning but since company will be depositing that amount towards your Gratuity fund your annual earning shall be deducted@ 4.81% which comes to Rs. 1071/yr., while in your sheet it has been mentioned Rs.12,852/ Please check with them.
Otherwise the mentioned break up is both legal and logical as per prevalent practices, subject to agreement of both the party i.e. employee and employer.
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CTC is nothing but Cost to the Company. As it denotes the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to know the details and if there is any issue with regards to the latter you can always ask for explanation with the HR.
Thanks and Regards