Can Employers Include Their 12% PF Contribution in Your CTC? Let's Discuss!

Hi, I just want to confirm, can an employer add their PF contribution (12% on basic) in CTC?

Regards,
Gayatri Naik

Yes, CTC components you can include are:

- Annual gross salary of the employee.
- Employer PF/ESI contribution.
- LTA (if applicable).
- Performance bonus (if applicable).
- Variable pay (if applicable).
- Hard furnishing (if applicable).
- Gratuity.
- Medical reimbursement.
- Mediclaim.
- GTI/Life security plan.
- Ex-gratia or bonus.
- Superannuation (if applicable).
- ESOP (if applicable).

Thank you.

Yes, the employer can add their PF/ESIC contribution to an employee's CTC. Most employers use this practice. Some employers also include Bonus/Gratuity in the employees' CTC—it depends on the employer's views.

Regards,
Hiten Dalal
Officer II Personnel

Understanding Superannuation and Retirement

Please tell me what superannuation is and what the difference is between superannuation and retirement.

Regards, Vikas Khatter