Is It Fair for Employers to Include Their PF Contribution in Your Monthly Gross Salary?

Hi, I am new to this forum. I have a general question regarding an employer's contribution to PF. Can the employer show its contribution to PF in an employee's monthly gross?

In my offer letter, the employer's contribution to PF is shown in my monthly gross, and every month the employer deducts its contribution from my monthly gross and pays the salary.

Also, I want to know if the employer's contribution to PF is extra to the employee's CTC or if it should be included in the employee's CTC.

Regards, Nitesh

Hi Nitesh,

The PF contribution on the employer's side is a part of CTC and is not included in your gross salary. However, it appears that the structure they are following includes it in both your CTC and gross salary.

Regards,

Amit Seth

Dear Nitesh,

I agree with Mr. Amit that the Employer's contribution of PF is shown as part of your CTC.

With regards,
LK

Please clarify in more detail as I would also like to understand if the employer's contribution towards PF is to be deducted from the employee's salary.

I have noticed a discrepancy in the gross salary mentioned between my appointment letter and monthly pay slip. In the appointment letter, it is stated as 12500, while in the pay slip, it shows 11825. However, the net salary remains the same in both documents. The appointment letter mentions that the employer's PF of Rs. 675 would be deducted from my salary, but this deduction is not reflected in the pay slip.

Is it acceptable to deduct the Employer PF along with the employee PF from the employee's salary? Could you explain the difference between CTC and gross salary? How can I determine my CTC?

Please provide clarification.

Thanks