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Par2025
1. For PF contribution, employer needs to contribute 12% from his end. So i want to know is this amount part of employee's CTC ?
or this amount will be separate and added additionally for PF contribution from employer's end.
2. Also please share the proof of government record whatever is your answer, as i will have to show that to management.
3. Is there any latest amendments, kindly share the relevant doc/links.

From India, Jaipur
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Vmlakshminarayanan
Agm - Hr&admin
Rkn61
Sr. Hr Manager

vmlakshminarayanan
919

Hi,

Strictly speaking employer contribution to PF should be separate and it is in addition to the salary offered to the employees. However now many corporates made it as part of CTC there by what ever salary fixed , in it employer PF added to salary out of Gross salary as total cost to company

From India, Madras
Par2025
Hi,
Thanks for replying. So if employer adds the pf amount in CTC, is it legal ?

I was just going through FAQ on epfo, and first point says wages can not be reduced and as per (Point 12 of EPFO act,1952) employer can not reduce the wage for his contribution.

From India, Jaipur
rkn61
624

Hello,

I presume you did not get the crux of the matter. CTC means Cost to Company. Whatever amount a company offers you shall be cost to company. This also include Company contribution towards PF and/or ESI on behalf of employee. It is a cost from company's perspective. Thus employer contribution is also an element of CTC .

From India, Aizawl
sandeeptomar2007
7

CTC is not written in any act. Its depends on company internally system that what's additional heads they will consider in CTC. Maximum companies consider only Employer side PF and ESI part but some of the other companies also added other benefits also like Bonus, Graduity, Uniform allowances, Transport cost etc.

You have to must ensure that what are the head is cover in CTC and after that what will be the Bank transfer amount.


Sandeep Tomar
Head - HR, Legal, IR
Gurgaon

From India, Delhi
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