Understanding CTC: Is Your Employer's PF Contribution Really an Extra Benefit?

Hi friends,

Kindly let me know whether PF contribution by the employer is actually done by the employer or if it gets deducted from the total CTC offered to an employee.

Thank you.

Hello Vijaya,

PF Contribution of employer-------

If it's CTC you are offering to the candidate, i.e., saying xxxlacs/annum including all emoluments, then PF Contribution of employer is a part of CTC. At the same time, you have to be sure what is stated in the offer letter given to the employee.

Hi Vijaya,

CTC has PF contribution of the employer included in it, so there is no need for the employer to provide it out of CTC.

Anyone can give me the CTC breakup of an employee whose CTC is 9.6 lakh per annum. Please help me out with this.

Hello Pinki Singh,

Giving a breakdown like this is not possible because it varies from company to company and is based on company policy. Company policies regarding higher monthly take-home pay, maximizing employee tax savings, and annual benefits are factors that create differences in CTC from company to company.

Regards

Hello Mahendra,

Actually, I want to know superficially what are those things which will be included in this CTC package? For example, if you are getting 9.6 lakh per annum in your present company, then what will be its breakup?

Hello Mahendra,

Thank you a lot for your help. Actually, I'm a fresher and I want to clear my concept related to the CTC breakup of a company.

Dear Vijaya,

Both employer and employee contributions to PF are components of CTC only. You can deduct 24% of basic+DA+cash value of food concession+retaining allowance, if any, from the employee's CTC.

Regards,
Skantha

Dear All,

If it is CTC, the breakup varies from company to company. These days, few companies are including VPP (Variable Performance Pay) like incentives in the CTC. If we are including the VPP, then what about the employer PF? Do we need to show it to the employees in the CTC?

CTC Format

Helpful to Y
Pradhuman Singh

Hi Pinki. As per my company policy, CTC includes HRA, conveyance, education, kit allowances, fitment, medical allowances, bonus, even insurance, PF, etc.

Thank you.

Dear Mahender Singh,

I have gone through the attachment. You didn't mention about the employee PF.

Regards,
Ramesh

Dear Friends,

The CTC will include the total contributions of PF and ESI from the employer's side as well.

Nandini M S

Dear Vijaya,

Yes, Vijaya, it is a part of CTC. CTC includes Employer PF & ESI Contribution, which is called Cost to the Company.

Regards,
Guneet Kaur
Manager-H.R

Employer contribution towards PF is a part of CTC. Employee's contribution towards PF is a deduction from the employee's CTC.

Nkkundrai