Hi all,
Can an employee's contribution be deducted from gross salary each month before deducting employer's share from monthly CTC?
For example,
Mr. X's monthly CTC is 26,8000
With structure of
Basic 15000
HRA 7500
Allowance 2500
PF @12℅ 1800
Total 26,800
So, can a company first deduct employees' contri. To PF from basic salary
And after that deduct employer's share too?
26800-1800-1800=23200 - in hand salary?
Is that acceptable?
Or it should be
26800-1800=25000?
I really need to understand this. When they said Employer's share is part of CTC, so do both PF share will be part of salary structure of CTC or just one PF? If only one PF amount is part of Salary structure, than how can employees contri is deducted from basic salary after that?
Any explanation will be appreciated.
Thank you in advance!
Can an employee's contribution be deducted from gross salary each month before deducting employer's share from monthly CTC?
For example,
Mr. X's monthly CTC is 26,8000
With structure of
Basic 15000
HRA 7500
Allowance 2500
PF @12℅ 1800
Total 26,800
So, can a company first deduct employees' contri. To PF from basic salary
And after that deduct employer's share too?
26800-1800-1800=23200 - in hand salary?
Is that acceptable?
Or it should be
26800-1800=25000?
I really need to understand this. When they said Employer's share is part of CTC, so do both PF share will be part of salary structure of CTC or just one PF? If only one PF amount is part of Salary structure, than how can employees contri is deducted from basic salary after that?
Any explanation will be appreciated.
Thank you in advance!