Is It Fair for Companies to Include PF in CTC Without Adding It to Payslips?

Hi Friends, we have recently received our appraisal letter and noticed that the PF (company contribution) is added to our gross salary and shown as a hike in our payslip. Upon receiving our payslip, we were shocked to notice that the PF is not added to the slip.

Question on PF and CTC

Is there any government norm or company decision that allows the PF (company contribution) to be shown as part of CTC? Please advise. I am not sure why this trick has been made by the management to fool the employees.

Regards

Hello Friend, these days, every employer is following this trick to show that they are paying a good amount to their employees. This tricky concept is called CTC, where they show everything they pay to employees. For CTC, there are no specific rules from the government; it all depends on the company policy. Some companies will add PLI (Performance Incentives) and bonus, apart from PF.

I am surprised, or rather shocked, at the language used by the members of this forum. "Trick" or "every employer following this trick." If you do not know the concept, everything is a "trick." Also, if you do not trust your employer, again, everything is a "trick." Please refrain from using such language in public discussions.

Understanding CTC

The answer rests in the term used in the question itself: "CTC." For your understanding, the term means "Cost to Company." Therefore, it should include all the costs which the company incurs on an employee, whether capable of being represented in cash or kind. As mentioned by others, companies may take different approaches, but this does not change the meaning of the term CTC. I would recommend all to gain a better understanding of the term CTC, and that shall help you a lot.

Also, if you believe that you have been "tricked" or do not trust your employer, leave the company immediately. Every day you go to the office, you do more harm to yourself than to the company you work for.

It's a public site, and everyone has their own opinion. We are decent enough to call these cheating rules at least "tricks" as these 'rules' as per some people's language are never disclosed at the time of joining.

Including a company's contribution towards PF in the CTC cannot be called a trick. As Sushil rightly mentioned, CTC stands for Cost to Company, whether in cash or kind. Whatever the company spends on an employee is a cost to it; hence the term "CTC".