Though it is a new practice showing the employer's contribution towards EPF etc as part of CTC, the system is wrong. All contributions to be made by employer are statutory in nature and is implied that an employee working in an organisation which is covered by EPF Act, will be eligible for contributory provident fund. Therefore, there is no need to add colour in the pay offer by showing all these costs to company. It is not basically correct to show the total CTC, the gross including the employer's contribution to PF and then deducting the employer's share from it to arrive at the net salary.
By virtue of scheme 31 of the Employees Provident Schemes, an employer should not deduct his own share from the salary. Here salary shall be the CTC and amount paid to employee is after deducting 24%, ie, 12+12 . This is a wrong practice, I suggest.
Regards,
Madhu.T.K