Dear Forum members, Please guide is it correct to add /consider employees PF and ESIC contribution into CTC. If it is so then how it benefits employee and employer. Thanks
From India, Indore
Anonymous
3

No , PF and Esic can not be added to CTC.
From India, Jamshedpur
Employees PF & ESIC contribution is deducted from Employee's earning which has already considered as CTC. Therefore, any deduction from Employee's earning - PF, ESI, ITAX, PTAX etc. never be part of CTC.
CTC is management tool to understand properly how much management is spending for the employees at any point of time.
S K Bandyopadhyay (Howrah, WB)
+91 98310 81531

From India, New Delhi
There is no concept of CTC in employment laws.It is only an industrial practice, more so to conform to accounting norms as I understand. It is inclusive of expenses incurred by the company on account of employee.Thus it include only the employer part of PF & ESI contributions but not the employee part thereof.
B.Saikumar
HR & Labour Relations Adviser

From India, Mumbai
Cost to company, clearly means that it is calculation of cost or expenses which company bears against each employee.It is the attribute for accounting and budgeting for company and its has no relevance towards the labour laws or its compliance.
From India, Vadodara





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