Is My Company Deducting PF Twice? Understanding My Salary Breakdown and CTC Confusion

Hello Everyone, I have a query related to my current CTC. In that, ₹760 is deducted from my salary for PF contribution. However, the company contributes the same amount deducted from the special allowance. Basically, my salary is ₹15,833, and after all deductions, I am receiving ₹14,113. This means ₹760 is deducted twice: once for the PF contribution and secondly from the special allowance. In my previous company, there was no such deduction. The previous employer did not mention the company contribution amount for PF in the salary structure, yet I was still receiving the benefit.

Here is my CTC breakdown:

A. Fixed Compensation

- Basic Salary: ₹6,333
- House Rent Allowance: ₹2,533
- Conveyance Allowance: ₹800
- Special Allowance: ₹4,157
- Medical Allowance: ₹1,250
- PF: ₹760

Thank you.

Employer Contribution and CTC Structure

Ideally and legally, the amount of employer contribution toward PF cannot be part of your salary structure. However, due to MNC culture and globalization, this new concept of CTC is very deceiving. Employers show you that they are offering a big package. In fact, CTC contains all parts, including payments made by the employer, statutory contributions, gratuity, etc.

This is because the definition of CTC is not provided anywhere.

Regards,
Sanjay

Understanding CTC and PF Contributions

CTC means Cost to Company, and hence it will include all the payments made on your behalf. The PF amount of Rs. 760 shown on the sheet is the contribution from the Company. Your PF contribution is deducted from your Basic salary. Therefore, the amount of Rs. 760 is deducted twice from your CTC.

Regards,
Joy