Provident FUnd [Thread 467032]

Our company doesn\'t contribute its share towards the PF..rather it deducts the same from our salary and shows it as employer\'s contribution..So i contribute both the parts from my salary and when questioned they said that its there in our offer letter..Please guide what to do??

Hi,
Before taking you in , your employer might have told that the fixed salary is CTC. Then nothing wrong in that . You would have discussed about this with the recruting person. However, it is verty clear nothing wrong in your case.
Hrkpati

The employer should not deduct the employer share of PF (13.61%) for employees. It is a criminal offense under the act. You may take this to the PF authorities.

Dear JKMC,
How it could be a wrong. In pay slip gross salary will be after adjusting Employer contribution. See this,
IF CTC is Rs. 10,000/-, Employer will offer you at 9,220/- Salary. (This will be informed to new guy at the time of entry)
Then Pay slip will Gross Salary 9,220.00
Less PF Employee 780.00
----------------
Net Pay 8,540.00
Here CTC is an internal matter of the Employer for budgeting with the new guy. In this way Where is the criminality? It is only an agreement.
If anybody says and files suit against this, contact me at [Login to view]
Dear JKMC - your counter will definitely correct me , please argue on this.
Hrkpati
.

Hi All,
I Agree with @Hrkpati, There are two mathods are follows normally by employeers
1. Employeer Tell you only what is your monthly salary i.e. your gross salary.
2. another one is and most popular mathods among employeer that thay calculate all of expenses which they pay for you and against you. and they show that this is your CTC. for example.
If your salary is Rs. 15000. Than your CTC will around 16790.00. HOW??
Salary 15000.00
Employeer PF Contribution @12% on basic i.e. 60% your gross salary is 1080.00
Employeer ESIC Contribution @4.75% of your gross salary is 712.5
Now 15000+1080+712.5 = 16792.00
In that case your CASH in HAND range is Rs. 13652 after deduction of PF and ESIC Contribution at Employee Part.
So always take a look before join or accepting offer letter that wether they are asking your CTC or Your Salary.
Thanks