Pf Contribution - Xls Download - Pf Contributions

Hi,
My Company deducts both 12%employer and 12% employee contribution from CTC. We have break up as Basic, HRA,Medical, Conveyance and Special allowance. Pls help me in a proper break up where if candidate wants to know his net salary.

Hi,
According to me you will get net pay after you deduct the PF, ESI(If appalicable) and any other deductions from the Salary Break parameters that you have mentioned and also incentives(if any).
Correct me if i am wrong.
Regards
Amith R.

Hi,
Yes thats right net salary will be after deduction of PF but if I add this PF amount in CTC that will increase so should I show PF seperately as its a deduction.

Hi,
As for as my knowledge goes i think CTC is the one which includes everything so their is no other way that PF can be shown separate.
Please correct me if i am wrong in this.
Regards
Amith R.

Hi,
Can u gv m idea eg CTC is 2.4Lakhs Basic is 40% which 8000 HRA is 6000 which is 30% Medical is 1250 Conveyance is 800 Special allowance is Bal fig. Employer cont is 12% of Basis and employee cont is 12% of Basic
Basic:8000
HRA:6000
Medical:1250
Conve:yance:800
SA is bal fig
If Ill show PF amt the CTc will increase which is not than how can I show PF amt?

Dear,
PF amount will be 12% of basic i.e. Rs. 960.
Net Salary of Person will be Basic + HRA + Conveyance + Special Allowlance - Rs 960 (Contribution from Employee Side)
Medical not added bcoz it is given on yearly basis.
But in CTC you will add Employe's contribution which will be Rs. 1089 (13.61% of Basic---- 12% Employer's contribution + 1.61 EDLI and Admin Charges)

Hi,
But our company policy is 12% employee and 12% employer contribution is part of CTC. And Medical is added in break up sal and gvn on monthly basis we need to quarterly or yearly provide bills if not submited it vll be under tax component

Hi Ragni,
What you have mentioned is i think the right way and you can go ahead with it.
Regards
Amith R.

Hi Ragni,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.

Dear Ragni,
When we talk about CTC, we mention all expenditures which we spend on an employee in a year thus it includes PF contribution of employer (12%), Gratuity Contribution of employer (4.81%), If ESIC is, applicable, ESIC @ 4.75%.
If an employee's CTC is Rs. 240000, the emoluments (as per your mentioned percentages of Basic and HRA), the CTC would be like this:
Amount %age
Basic 8000 40%
HRA 6000 30%
Medical 1250
Conv. 800
Special 2990
Gross 19040

PF 960 12%
Yearly Basic 96000
Yrly HRA 72000
Yrly medi 15000
Yrly conv. 9600
Yrly Special 35880
Yrly PF Cont. 11520
240000
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)