How to Adjust Salary Structure for CTC with New PF Deductions? Seeking Examples!

Hi,

My company is newly established and has just crossed the mandatory number of employees for PF deduction. Until today, our employees were receiving their full salary, i.e. after the deduction of PT and tax, there were no statutory deductions. However, from now on, we have to deduct PF. Since we follow the concept of CTC, we have to deduct both portions from the employee only. Can you suggest to me how the salary structure will be then? (Please provide an example for a monthly salary of 50,000).

Our current salary structure is as follows:
Basic: 25,000
HRA: 12,500
Conveyance: 800
Special Allowance: 10,450
Medical: 1,250
Total: 50,000

Deductions:
PT: 200
Tax: 5,000
Take-home: 44,800

Thank you.

My company is newly established and has just crossed the mandatory number of employees for PF deduction. Until now, our employees were receiving their full salary, i.e., after the deduction of Professional Tax (PT) and income tax, without any statutory deductions. However, from now on, we have to deduct PF contributions. Since we follow the Cost to Company (CTC) concept, we have to deduct both portions from the employee's salary. Can you suggest how the salary structure will be affected? Please provide an example for a salary of 50,000 per month.

Our current salary structure is as follows:
- Basic: 25,000
- HRA: 12,500
- Conveyance: 800
- Special Allowance: 10,450
- Medical: 1,250
Total: 50,000

Deductions:
- PT: 200
- Tax: 5,000

Net Take-home: 44,800