Employer PF Contribution: Should CTC Include Admin Charges or Just the 12%?

Hi,

Should the employer PF contribution be shown in CTC as 12% or 12.85% including the PF admin charges?

Dear Menon,

Salary breakup mentioned in the details below.

CTC (Gross + Benefits)
Gross (Net Salary + Employee Statutory Deduction)
Net Salary (Gross - Employee Statutory Deduction)

Actually, as per the Statutory regulations, the Gross Salary breakup is mandatory. The rest of the details depend on your HR policy. The employer's contribution of 12.85% as per the new amendments is absolutely correct.

Siraj/HR

Dear Menon,

Ac No.1 - 3.67%
Ac No.2 - 0.85%
Ac No.10 - 8.33%
Ac No.21 - 0.5%
Ac No.22 - 0.005%

Total employer contribution is 13.36% including admin charges.

Thanks,
Anbarasu

Best practice is not to include all others and show only 12%, as others are not a benefit which an employee takes home.

Regards, Murali