PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Ceo-usd Hr Solutions
Pan Singh Dangwal
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Pan Singh DangwalDear Member,
The confusion is due to misunderstanding of “Gross Wages” & “CTC” concepts.
The take home salary is difference of “Gross Wages” and “Various Deductions (like PF-ESI-PT etc.)”.
But in CTC other components also added in the Gross Wages which the employer pays for the employee (like Employer PF-ESI Contributions, Annual Bonus, Medical, Gratuity etc.). The employee don’t get those amounts in cash, since the employer pay for the employee hence included in the CTC.
Now come to your above calculation. In your case the Gross Wages is 13685 (12000+1685) from which Rs. 1640 (PF-1440+ PT-200) deducted and you are getting Rs. 12045/-. That is fine.
Your CTC is Gross Wages-13685 + Other Benefits 2398 (458+500+1440) = 16083/-.
The other Salary Slip is just showing Gross Salary, deduction and Take Home salary. Hence PF deducted only one time.
Hope the matter is clear now, fellow members can throw more light on the matter.
From India, Delhi
nanu1953First Pay slip will not be accepted by any statutory authority. Second one is perfectly ok. CTC has no legal stand. It is a tool for management to control/understand the cost per employee.
Legal pay slip has nothing to do with CTC. It should be only earning side of monthly gross and deduction side - PF, ESI, PTAX etc.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi