Query Regarding Total Earnings on Pay Slip
I have a query regarding the Total Earnings on the pay slip. The offered CTC is Rs. 15,120/- per month, but it is displayed as Rs. 14,436/- per month. Is this correct?
When I asked for the reason, the reply from the manager was: "Your Total CTC is Rs. 15,120/-, which as per your salary statement, includes Total Earnings of Rs. 14,436/- plus Total Benefits of Rs. 684/- (PF), amounting to your CTC of Rs. 15,120/-." However, the complete figure of Rs. 15,120/- is not displayed on the pay slip; instead, Rs. 14,436/- is mentioned, which I feel is not a correct process.
Kindly help.
Regards,
Asna Siddiqui.
From India, Hyderabad
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21I have a query regarding the Total Earnings on the pay slip. The offered CTC is Rs. 15,120/- per month, but it is displayed as Rs. 14,436/- per month. Is this correct?
When I asked for the reason, the reply from the manager was: "Your Total CTC is Rs. 15,120/-, which as per your salary statement, includes Total Earnings of Rs. 14,436/- plus Total Benefits of Rs. 684/- (PF), amounting to your CTC of Rs. 15,120/-." However, the complete figure of Rs. 15,120/- is not displayed on the pay slip; instead, Rs. 14,436/- is mentioned, which I feel is not a correct process.
Kindly help.
Regards,
Asna Siddiqui.
From India, Hyderabad
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There is nothing wrong with your payslip. The employer's contribution to PF has not been mentioned on the earnings side of the PF. Most employers don't mention that since it is not paid to you and forms part of the benefits and not part of the salary.
Regards,
Savio
From India, Mumbai
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Regards,
Savio
From India, Mumbai
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Thank you Mr. Savio. But will it not be effective in my future if i had to change the company... as there is no word mentioned in my payslip about my offered CTC (Rs. 15120/-)... Regards, Asna.....
From India, Hyderabad
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From India, Hyderabad
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Yes, Mr. Savio, I have recently joined this company. The salary structure and payslip are totally different from my last organization, so I wanted some help. Thank you for your valuable information.
Regards,
Asna
From India, Hyderabad
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Regards,
Asna
From India, Hyderabad
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Normally, there will be deductions in the monthly CTC like TDS (if you are earning a taxable salary), Professional Tax of Rs 150 or 200, and PF. All these will be reflected in your payslip. The monthly gross should reflect as 15,210, and the monthly net pay after deductions should be Rs 14,436 in your case.
Regards,
Shree
From India, Hyderabad
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Regards,
Shree
From India, Hyderabad
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hi Asna, Do not feel the ctc , only you have check your monthly gross .Because ctc was including emplee contribution(Esi , pf ) also .
From India, Madras
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From India, Madras
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hi Asna, Do not feel the ctc , only you have check your monthly gross .Because ctc was including emplee contribution(Esi , pf ) also Regards, Mohankumar,A
From India, Madras
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From India, Madras
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Nothing is wrong with your salary. The other benefits, like the employer's share of EPF, ESI, LTA, medical, and other annual benefits, are not mentioned in the salary slip, but the employer is paying you all these. These are costs to the company for an employee, and all employer's share contributions and annual benefits are mentioned in your offer letter or increment letter.
Regards,
Ajay
From India, Jaipur
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Regards,
Ajay
From India, Jaipur
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I am preparing salaries in Tally ERP 9.0. I have completed all entries and checked the payslip, but I can't find the EPF employer contribution of 12% and 1.61%. What could be wrong? I should not be making this mistake. Please advise.
Regards,
M. Nagaraju
From India, Hyderabad
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Regards,
M. Nagaraju
From India, Hyderabad
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Understanding PF Contributions in Salary Deductions
I understand everything as mentioned in the offer letter clearly. But what will be the difference between the employer's and the employee's contribution to PF if an employer is deducting it from the employee's salary? In such a case, this cannot be mentioned as an employee's benefit (as displayed in the payslip). Due to such deductions, the employee's in-hand CTC is being affected, which can be very disappointing in the end.
Is it correct to deduct the employer's contribution to PF from employees' salary?
Regards,
Asna
From India, Hyderabad
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I understand everything as mentioned in the offer letter clearly. But what will be the difference between the employer's and the employee's contribution to PF if an employer is deducting it from the employee's salary? In such a case, this cannot be mentioned as an employee's benefit (as displayed in the payslip). Due to such deductions, the employee's in-hand CTC is being affected, which can be very disappointing in the end.
Is it correct to deduct the employer's contribution to PF from employees' salary?
Regards,
Asna
From India, Hyderabad
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Understanding CTC and Salary Discrepancies
Your concern is RIGHT! If your CTC (Cost to Company) is amount "A," your salary is bound to be less than "A." The confusion (or mischief?) is that while "salary" should be negotiated, employers negotiate "CTC." Gullible employees IGNORE the difference and discover the truth only when they get the pay slip!
I have said again and again on this forum and elsewhere that CTC has NO legal support/justification. It is merely a "tool" for budgeting "manpower costs," which is fair in the sense that an employer has an obligation to budget and control all costs for the good of the organization, but that is where it should stop.
As far as the PF is concerned, both the employee and the employer have to contribute 12% of Basic+DA (up to Rs. 6500/- and nothing over this limit). The employer has to pay the PF administration an "administrative cost" of 1.61% of the Basic+DA on which PF contribution is contributed.
Now, while 13.61% of Basic+DA is a "cost to the company (CTC)," the law specifically prohibits the employer from recovering its (employer's) contribution obligation from the employee's salary. If employers negotiate "salaries" and not "CTC," the matter becomes simple and credibility remains intact! It is also for this reason that the CTC does NOT appear in your pay slip, as if it does, it will get the status of "salary," and the employer will be guilty of recovering its own (Employer's) contribution from the employee's salary, which would be a provable breach of substantive law on the subject.
Since employers take due precautions in this regard, the candidate has to choose whether to be led up the garden path by believing the CTC is your agreed salary and discover the truth later, OR to diplomatically insist on negotiating "Salary" alone OR to negotiate a higher CTC so that your "salary" expectations can be realized! Unless you are on guard, your future "salary increments" would also be structured on the principle of "CTC," and believe me, I have seen this happening in reality!
Further and finally for now, the CTC that an employer uses does NOT cover every cost of the employee that the organization anyway, and then becomes ignorance(?) or dishonesty on the part of the employers, but is a justification in the hands of the employee to insist on negotiating "salary" and NOT the CTC!!!
All that is said here is an explanation of the thought train of such employers. I am aware that this explanation will not resolve your problem and will only tell you where and how you have slipped.
Regards,
samvedan
January 2, 2013
From India, Pune
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Your concern is RIGHT! If your CTC (Cost to Company) is amount "A," your salary is bound to be less than "A." The confusion (or mischief?) is that while "salary" should be negotiated, employers negotiate "CTC." Gullible employees IGNORE the difference and discover the truth only when they get the pay slip!
I have said again and again on this forum and elsewhere that CTC has NO legal support/justification. It is merely a "tool" for budgeting "manpower costs," which is fair in the sense that an employer has an obligation to budget and control all costs for the good of the organization, but that is where it should stop.
As far as the PF is concerned, both the employee and the employer have to contribute 12% of Basic+DA (up to Rs. 6500/- and nothing over this limit). The employer has to pay the PF administration an "administrative cost" of 1.61% of the Basic+DA on which PF contribution is contributed.
Now, while 13.61% of Basic+DA is a "cost to the company (CTC)," the law specifically prohibits the employer from recovering its (employer's) contribution obligation from the employee's salary. If employers negotiate "salaries" and not "CTC," the matter becomes simple and credibility remains intact! It is also for this reason that the CTC does NOT appear in your pay slip, as if it does, it will get the status of "salary," and the employer will be guilty of recovering its own (Employer's) contribution from the employee's salary, which would be a provable breach of substantive law on the subject.
Since employers take due precautions in this regard, the candidate has to choose whether to be led up the garden path by believing the CTC is your agreed salary and discover the truth later, OR to diplomatically insist on negotiating "Salary" alone OR to negotiate a higher CTC so that your "salary" expectations can be realized! Unless you are on guard, your future "salary increments" would also be structured on the principle of "CTC," and believe me, I have seen this happening in reality!
Further and finally for now, the CTC that an employer uses does NOT cover every cost of the employee that the organization anyway, and then becomes ignorance(?) or dishonesty on the part of the employers, but is a justification in the hands of the employee to insist on negotiating "salary" and NOT the CTC!!!
All that is said here is an explanation of the thought train of such employers. I am aware that this explanation will not resolve your problem and will only tell you where and how you have slipped.
Regards,
samvedan
January 2, 2013
From India, Pune
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CTC SALARY SLIP FORM.xls