Confused About EPF Deductions? Why Is My Salary Lower Than Expected?

Salary Head (A) Per Month

BASIC DA - 20,000
HOUSE RENT ALLOW. - 8,000
CONVEYANCE ALLOW. - 1,600
SPECIAL ALLOW. - 34,305
GROSS SALARY (A) - 63,905

Retirals (B)

EMPLOYER PF - 1,800
GRATUITY - 962
TOTAL (B) - 2,762

Fixed CTC (A+B) - 66,667

Year-end Bonus (C)

Retention Bonus will be paid post completion of the year INR 50,000/-

TOTAL CTC (A+B+C) - 8,50,000/-

Now, my question is the monthly salary is calculated to be 66,667, but I am receiving 59,344 in the bank based on the following calculations after checking the salary slip:
Monthly - 66,667
Gratuity - 962
TDS - 2,761
EPF - 3,600 (1,800 - Employee Contribution, 1,800 - Employer's Contribution)
Received in Bank - 59,344

The website that displays the salary slips shows the employer's contribution to EPF, but based on the calculation above, it's evident that the amount is also being deducted from the salary. I have confirmed this with the HR of the company.

1) Is it correct that both parts of EPF are being deducted from the CTC?
2) If not, what steps can I take to rectify this?

Please assist me in resolving this matter.

Understanding Salary Components

Your monthly gross salary is 63,905/-, and your monthly gross CTC is 66,667/-. These two are different. Your payslip should reflect only the monthly gross salary, not the monthly CTC.

Now, if you deduct your TDS and Employee EPF contribution from your monthly gross salary, it will be 59,344/- as the monthly net salary.

Employers, for internal control, may consider the Employer's portion of PF, Gratuity, etc., as part of CTC, but those are not your monthly gross salary. That is the reason for your confusion.

Regards, S K Bandyopadhyay (Howrah, WB)

[Email Removed For Privacy Reasons]

Hi, thank you for your responses. But I am still not getting it. How come the CTC includes EPF portion from both sides? Can you please elaborate on your points? It would help a lot.

Attaching the offer letter and the latest salary slip. If it helps.

Rs. 1800 is only deducted from your Gross salary, which is correct since it is your contribution. Another Rs. 1800 is the Employer's contribution to your PF account, which is also correct as it is added after Gross Salary.

CTC - Monthly Gross salary equals Employer Liability for your retirement benefits as per the Act, which is shown in the appointment letter to understand the cost of the benefits. You can claim it when you leave the company. While in service, it is not possible.