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
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30From India, Indore
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Employees' PF & ESIC contributions are deducted from the employee's earnings, which are already considered as part of the CTC. Therefore, any deductions from the employee's earnings - such as PF, ESI, ITAX, PTAX, etc. - should never be included in the CTC.
CTC is a management tool used to understand how much the management is spending on employees at any given point in time.
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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CTC is a management tool used to understand how much the management is spending on employees at any given point in time.
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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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 employees. Thus, it includes only the employer's part of PF & ESI contributions but not the employee's part thereof.
B. Saikumar
HR & Labour Relations Adviser
From India, Mumbai
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B. Saikumar
HR & Labour Relations Adviser
From India, Mumbai
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PF ESIC.xls
PF for foreign employees 1.10.08.pdf