Hi Prem Chandra

pls elaborate.

I think you are saying that the employment contract will supersede the offer letter and this will fix the problem. Is it?

Do you also think, that we should have an explanatory line in the offer letter that Employee contribution is shown separately for clarity sake and will be included in the special allowance in the employment contract?


From India, Guwahati
Advocate Prem Chanda Yadav

we need to clear mention all entitlement same as any documents part like offer letter, appointment letter, salary register, salary slip etc.
Each word corelated to each other. IF we shown special allowance it go in special allowance and not convert in PF Share. i.e head to head and cap to cap entitlement carry forward.

From India, Mumbai
Sir, we cannot modify the offer letters that have been rolled out. Can you provide a solution to this matter? I assume members are highly experienced in HR subjects in this community.

possible solutions that I can think of:

1. employee contribution can be renamed as other allowance or contribution allowance or some other allowance which would amount Rs. 1800. This way our employees won't get confused.

2. we can include it in the special allowance and while signing the employment contract - we can get them to agree that employee contribution as shown in the offer letter is included in the special allowance.


From India, Guwahati

@ PKAssociates

Please correct me if I am wrong. My observations and suggestions are as follows:-

1. The Xls sheet which has been enclosed appears to me different in respect to similar remuneration to other organizations in India. Usually in today's context employees at medium/higher level are also receiving LTA, Car facility, variable pay etc. which are absent in your structure.

2. The organization is restricting PF contribution up to 15000/- per month statutory cap.

3. Usually in any offer / appointment letter it is not mentioned the employee portion of PF contribution. What about PTAX then if applicable in your State and to be deducted from the employees' earning.

4. There is no relation between PF contribution vs Special allowance ( other allowance ) .The concept is PF gross as per verdict of Apex court on which PF to be deducted subject to Statutory cap 15,000/- per month or with no upper limit as per policy of the organization.

5. As you have already rolled out the offer letter then to my opinion you need not to change any thing.

6. Your Pay slip should be earning side only the the earning components and no employer or employee contribution to PF. The deduction side should be Employees' portion of PF, PTAX if any, ITAX and any deduction if applicable against loan/advance, Net Salary should be Earning - Deduction.

7. Your Pay roll should look like above which in case of any visit from any statutory body will check and satisfy.

8. My personal suggestion to restructure your existing remuneration structure as you have mentioned in your Xls. sheet with some yearly components at least with one variable pay based on performance of the organization as well as individual.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi
Good evening all of you, I have one query related CTC. In this how to find out Gross salary,based upon gross salary comes remaining.Also we calculate pf and esi based on baisc and how to devide gross salary from ctc
From India, Guntur

What are all the factors included in the CTC is known only to the people in your organisation. For others it can at best be only a guess work.
From India, Mumbai

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