Hi, I just started working, and this month, I received my salary. There is great confusion as both the employee and employer contributions are deducted from my salary. I want to know why they have deducted the employer's contribution from my salary.
Understanding CTC and Take-Home Salary
My CTC is 15,000 per month. Please tell me what should be my take-home.
Regards
From India, New Delhi
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Understanding CTC and Take-Home Salary
My CTC is 15,000 per month. Please tell me what should be my take-home.
Regards
From India, New Delhi
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Parul, Have a look at your appt letter and CTC classification. Many companies include both contributions under CTC. Pon
From India, Lucknow
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616From India, Lucknow
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Please put up the Payslip component and amounts here ,, Earnings 1 2 3 4 5 TOTAL Deductions 1 2 3 4 5 TOTAL
From India, Madras
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From India, Madras
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Here is my salary break-up Basic-6232 HRA-3116 Convy-1246 Medical-1246 other-1246 LTA-519 Deductions PF-748 ESI-238 My CTC-15000
From India, New Delhi
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From India, New Delhi
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It is correct only naa yaar, 12% of Basic i.e 6232 is Rs.748/- which is employee contribution, employer contribution is seperate yaar ;)
From India, Madras
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From India, Madras
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your salary breakup & CTC is right bsic is 30% on CTC, PF is 12 % on basic,HRA is 40% on basic , i thnk u r clear nw.
From India, Pune
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From India, Pune
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Understanding Salary Deductions
Example: CTC—15000. The basic will differ from state to state. As per Hyderabad, the basic is 40% of CTC. Therefore, 40% of CTC amounts to 6000. From 6000, deduct 12% for the employer's contributions, which equals 720. So, 15000 - 720 = 14280. Your gross salary is 14280.
From the gross amount, your contribution of 12% will be deducted, along with professional tax and ESI (applicable for salaries below 15700/-). LTA depends on individual interest.
Regards
From India, Hyderabad
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Example: CTC—15000. The basic will differ from state to state. As per Hyderabad, the basic is 40% of CTC. Therefore, 40% of CTC amounts to 6000. From 6000, deduct 12% for the employer's contributions, which equals 720. So, 15000 - 720 = 14280. Your gross salary is 14280.
From the gross amount, your contribution of 12% will be deducted, along with professional tax and ESI (applicable for salaries below 15700/-). LTA depends on individual interest.
Regards
From India, Hyderabad
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Hi Parul, as Pon suggested, many companies have this practice of deducting both the employee and employer share from the CTC. However, these things should be discussed at the time of negotiations. I have been telling many people the same: during negotiation, they should be aware of their compensation package and deductions, as it can affect their take-home salary. Try talking to HR again, and if possible, request them for renegotiation, i.e., increasing the CTC by the amount they will be deducting as the employer share. It is possible.
From India, Delhi
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From India, Delhi
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Understanding Salary Components
Please try to understand the difference between Net Salary, Gross Salary, and CTC. Your Employer PF, Employer ESI, Bonus, approximate & confirmed Ex-gratia per annum, LTC/LTA, everything is considered as a cost to the Company. In Gross, the above will not be there, but all the deductions will be available. Net Salary is the emolument that you carry home.
Thank you.
From India, Kumbakonam
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Please try to understand the difference between Net Salary, Gross Salary, and CTC. Your Employer PF, Employer ESI, Bonus, approximate & confirmed Ex-gratia per annum, LTC/LTA, everything is considered as a cost to the Company. In Gross, the above will not be there, but all the deductions will be available. Net Salary is the emolument that you carry home.
Thank you.
From India, Kumbakonam
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Understanding PF Contributions
A company's contribution to PF should be 12% of Basic + DA. Out of this, 8.33% will go to EPS (maximum Rs 542). The company should contribute on its own, and it should not be deducted from the employee's salary. However, CTC is the cost to the company for anyone's employment, and it includes all the contributions made by the company on behalf of the employee. The terms of appointment should also be considered.
Regards,
Sandip Sengupta
From India, Asansol
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A company's contribution to PF should be 12% of Basic + DA. Out of this, 8.33% will go to EPS (maximum Rs 542). The company should contribute on its own, and it should not be deducted from the employee's salary. However, CTC is the cost to the company for anyone's employment, and it includes all the contributions made by the company on behalf of the employee. The terms of appointment should also be considered.
Regards,
Sandip Sengupta
From India, Asansol
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Bhaskar is right. The calculation of CTC includes all costs that the company is bearing at the end of the month/year. Basically, it is just a matter of understanding. We need to understand net salary, gross salary, and CTC.
Best Regards,
Moin
From United Arab Emirates, Dubai
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Best Regards,
Moin
From United Arab Emirates, Dubai
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Employee Benefits.doc
CTC SALARY SLIP FORM.xls