Employer's Contribution In PF

HI Supriya,
The PF regulations don talk of CTC. It only talks of the contributions that is 12% from employee and 12% from employer.
Now if we as a company wants to know how much is the cost of retaining an employee we add all those things that the empoyee is using even the cost of the floor space. This is for financial purposes.
The CTC that we use for hiring purposes is to show to the employee the hiden cost the company incurring on him. You may add gratuity (which is paid only on completion of 5 yrs), insurance coverage, transport and meal (if provided for free or at a discounted rate).
So if you add employers contribution to CTC it is absolutely fair and fine.
Best wishes,
Sunil Joshi

Ms Supriya
PF contribtion is a part of CTC. The same my be informed at the time of offering employment to the candidates. However, we should not deduct 24% (Both employee and employer share) from the PF salary of employee
SYAM PRASAD

As the term itself specifies...CTC means "Cost to Company" that means...it includes everything that an Employer Spends on an Employee. It also includes employer's contribution towards PF, ESI and other benefits like a house given my company, Laptop, Car, Mobile Phone etc etc etc.
I hope this will help.
Regards
Sanjeev Sharma

Hi,
Well I have a slight confusion regarding this as I think CTC & Gross Salary are different.CTC also includes all sorts of preveliges given like fringe benefits as well wheras gross salary would constitute of salary with contribution to PF added.
Pls share ur views
Cheers
Paulami

Please Clear my doubt about PF. whether it is 12% of basic or 12.5% please help me out.. any one.
Regards
Sameer

Hi Folks,
I've a doubt about the PF contribution. I know that the PF is divided into employee contribution and employer contribution. But my doubt is whether an employee will get tax benefit for the employer contribution of PF?
One thing is that the employer contribution of PF which is actually deducting from my CTC.
Hope to here you soon.

Hi Supriya:
Its a part of CTC generally followed.
In the CTC calculation you would show (12 % of the Basic) towards the PF -( employer's contribution), while explaining you would tell the employee that his take home would be minus of all the deductions like Professional Tax + Income tax + any other component + PF of (12% of Basic) would be deducted from his account.
Hope its clear.
Regards
Radhika

Hi,
can anybody tell me contribution of EDLIS part in PF deduction of an employee?
regards
ramana kumar

Hi!!
After reading all the arguments in this section can I summarize in a nutshell. This will clear my concept and if wrong plz correct me on this.
CTC = Gross salary + PF (employers contribution)
Net take home= CTC- Income tax- Professional tax- PF( Employers contribution) - PF(Employees contribution)
OR
Net take home= Gross salary- Income tax- Professional tax - PF(Employees contribution)
Please clear this out
Regards
Gunjan

It was good message.
I have a doubt if you can please help me?
I am working for a BPO and I got the new job offer,this is my salary annexure,
I need to know what is my take home salary after all deductions?
Please help me as I need to accept this offer and join by tomorrow...
Basic

9,000

DA

3,000
HRA

7,500
Conveyance Allnce

800
Medical Allnce

1,250
LTA

3,000
Special Allownce

5,450
Monthly Gross Salary(*)

30,000
Employer’s Annual Contribution to Provident Fund

17,280
Annual Salary

3,60,000
(*)Deductions

The above Break-up excludes Statutory Deductions such as

Ø Professional Tax – Per Month
Ø Tax Deduction at Source (TDS)
Ø Employee’s contribution towards Provident Fund -12% on Basic and DA

Please can you help me to know what will be my takehome salary?