Is LWF Deduction Part of CTC? Seeking Clarity on Construction Company Practices

I am working in a construction company where we are deducting Rs. 10 from the employee's side and Rs. 20 from the employer's side as LWF (Labour Welfare Fund). Could anyone please let me know if this amount should be included in the CTC structure or not?

Thanks

Regards

Usually, a company will not include the CTC. If you add it, nobody will question you, but it will not look good to show this meager amount.

Regards,
Eswar.K

Is it part of CTC? Can you add more details?

For which location are you working? I have worked in many locations but have not seen a slab like 10/20. Could you please let me know about the slab you are working with for that location?

It depends on the company. The LWF Department provides the flexibility where you can deduct the LWF amount from the employee's salary, or the employer can bear the amount. The choices are for employers.

Regards,
Ashish

You can; however, the amount would work out to Rs. 40 per annum, which I believe is peanuts—unless it helps the organization come out of the minimum wage issue, if any.

Regards,

Yes, this amount should be included in the CTC structure. (In Maharashtra, Slb. EE 6.00 Rs. ER 18.00 Rs. below 3000.00 gross & EE 12.00 Rs. ER 36.00 Rs. above 3000.00 Gross). After the gross amount, there are two structures, EE & ER. We are deducting from EE's contribution and adding it to ER's contribution (CTC).

Regards,
Anupsingh

Yes, you can. However, the amount you can reflect is Rs. 40/- in the respective employee's annual compensation package [twice in a year X 20].

Regards

No, nowhere in any of the labor laws does it speak about CTC. CTC means Cost to the Company. So, if you want, you can add the LWF into the CTC. That is not a problem. This CTC system is only created by the employer.

LWF and CTC Structure

LWF is a part of CTC as the employer is contributing their share. CTC = Gross + Employer's Contribution

Regards

[QUOTE=paletinarendar;1942099]

Understanding LWF in CTC

LWF is added in CTC. CTC = Gross + Employer's Contributions. Employer's Contribution towards PF, ESI, Bonus, Gratuity, and LWF comes in CTC if applicable.

Regards,
Narendar Paleti