Understanding PF & ESI: Are Employer Contributions Part of Gross Salary or CTC?

Dear All,

I am writing to inquire whether the Employer's Contribution towards PF & ESI is considered a part of Gross Salary or if it is included in the CTC.

Regards,
Deepak Dwivedi

Dear Deepak,

All the statutory contributions paid by the employer can be included in the Cost to Company (CTC), which comprises premiums for employee/dependent's insurance as well, especially in cases where ESI is not applicable.

Regards,

Vikram Tanwar

I know it's too late to reply. I saw this post just now and am replying. PF and ESI (contribution by the employer) are not part of the gross salary; they are included in the CTC.

Regards,
Kruthi

Dear ESI & PF contributions, statutory bonus, and even gratuity can be part of the CTC but not part of the gross.

Dear CTC is defined by the company in terms of what components they choose to include in the CTC. Can you believe that some companies provide two cups of tea per day and factor this cost into the CTC?

Thanks,
J.S. Malik