Pay Slips - Can we show Employer EPF deduction in a pay slip?

careercruise
Can we show Employer EPF deduction in a pay slip?
We used to show both the PF parts in an Employer Total CTC, but in Monthly payslips, we used to write the Employee PF part in the deduction. But in last in Net salary section - we used to deduct Employer part also. (that is not mentioned as such in payslip). It creates confusion in Employee's mind & they always ask us to mention the employer part also in payslips. But as per my Accounts team - legally we can't show Employer EPF deduction in salary slip.
Please let me know can we show Employer EPF deduction or not in Payslip? if not - What reason I should give to Employees.
Regards
Parul
Mahr
Hi Parul,
You need not add and should not have Employer PF as a part of the payslip. A payslip will have two sections "Gross Earning" & "Deductions". Employer PF in the past was not shown up as a part of the offered salary break-up, then HR's included that in the CTC, as the same is a cost to the company. Though CTC & Gratuity is a part of the CTC nowadays, you cannot include that as a deduction in the payslip.
Ashutosh Thakre
Hi Parul,
The employer PF is a part of the CTC and not monthly salary slip. Employer PF is part of the PF Slip and not Salary Slip.
It would be illegal to show that in the salary slip, as this would means that both the deductions are done from the employee's end.
So do not show the employer PF in the salary slip.
Regards,
Ashutosh Thakre
sathishrdotech
Greetings Parul,
As rightly brought out by Mahr, the payslip have two sections. Obviously the monthly salary always indicate the gross and the deductions = Net pay. This is what the employee contribution is. Apart from this whatever perks he gains is CTC (cost to company). Employer contributing to the employee directly or indirectly.
Adoni Suguresh
Employers contribution towards Provident fund cannot be shown into the respective employees payslip as the contribution of employers part 8.33 % will go to Pension accoun t which is being maintained by EPFO and remaining amount will be credited to the respective members PF account. Employers contribution to the Provident Fund is not the earnings of the employee as such it is a additional benefit to the employee as per EPF Scheme, 1952.
Payslip should contain only gross earnings less statutory deductions and net pay only.
Adoni Suguresh
Labour Laws Consultant
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