Dear all,
I work as HR in a SME. My query is regarding PF contribution as per Gross OR CTC. The situation in which I am stuck is as follows:
Till August 2014, we had around 15 employees on company payroll. Here Employer (my company) contributed 12% to employee's PF and another 12% was contributed by Employee. The employees who did not want to register under PF were made "off-roll" (we were making them cash payment of salaries on voucher).
Now from 01st September 2014, as the PF ceiling increased, we had to compulsorily deduct PF from contract workers' salary also. We have around 75 contract workers. Now this is also applicable to the workers who were taken off the role. But now our Director has asked me to deduct 24% of PF from employees' salary itself. Unlike earlier, he instructed me that now company will not contribute to PF of newly enrolled employees in PF. Whole 24% will be contributed by the employee.
Is it possible that a company who was contributing 12% to PF suddenly asks employees to contribute whole 24% to PF? I doubt this or I might be wrong but I do not think that company can change its policy from Gross to CTC.
Moreover this will also create a room of difference between the newly joined off-roll employees to and contract workers.
Please help me and guide me on this.
Thanks in advance!
I work as HR in a SME. My query is regarding PF contribution as per Gross OR CTC. The situation in which I am stuck is as follows:
Till August 2014, we had around 15 employees on company payroll. Here Employer (my company) contributed 12% to employee's PF and another 12% was contributed by Employee. The employees who did not want to register under PF were made "off-roll" (we were making them cash payment of salaries on voucher).
Now from 01st September 2014, as the PF ceiling increased, we had to compulsorily deduct PF from contract workers' salary also. We have around 75 contract workers. Now this is also applicable to the workers who were taken off the role. But now our Director has asked me to deduct 24% of PF from employees' salary itself. Unlike earlier, he instructed me that now company will not contribute to PF of newly enrolled employees in PF. Whole 24% will be contributed by the employee.
Is it possible that a company who was contributing 12% to PF suddenly asks employees to contribute whole 24% to PF? I doubt this or I might be wrong but I do not think that company can change its policy from Gross to CTC.
Moreover this will also create a room of difference between the newly joined off-roll employees to and contract workers.
Please help me and guide me on this.
Thanks in advance!