The total contribution from the employer's side is 13.61%, out of which 8.37% goes to the pension fund and 3.67% goes to the provident fund. My question is, where does the rest of 1.61% go? Is this 1.61% a part of CTC, or is it paid entirely by the employer? Please help me understand this.
From India, Delhi
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From India, Delhi
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The meaning of CTC is Cost to the Company. Whatever the company is spending on the employee is considered part of the CTC. The breakup for 1.61% is as follows: 1.1% PF Admin Charges, 0.5% EDLI Contribution, and 0.01% EDLI Admin Charges.
I hope I have cleared up your query.
Wishing you all the best.
From India, Kumbakonam
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1189I hope I have cleared up your query.
Wishing you all the best.
From India, Kumbakonam
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Employees' PF & Misc Prov Act 1952.pdf
Employees' PF & Misc Prov Act 1952.doc