Hi all, This is Ruchi. I am handling the HR Executive position in a small IT company where 60 employees are working. I need input on this: our employer wants to deduct PF from this month. However, as per the rule, the employer and employee contribution is 12-12%. Still, he is deducting the full 24% from employees' salaries, stating that the CTC they have offered is the Total Cost To the company, so all deductions will be from the salary. However, all employees are unhappy and are demanding 12% from their salary and 12% from the employer. Please help me on how I can support them because at the time we offered them the job, we stated that there would be no deductions from the salary apart from PT. I would appreciate your immediate response.
Thanks & Regards,
Ruchi Sharma
From India, Bangalore
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Thanks & Regards,
Ruchi Sharma
From India, Bangalore
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First of all, you need to clarify the concepts of CTC, Gross Salary, and Net Salary.
CTC includes all deductions, both from the employer and the employee. Gross Salary includes deductions only from the employee. Net Salary, or "in-hand salary," refers to the amount after all deductions have been made.
You should communicate to all your employees that the amount offered to them is their CTC, not their Gross or Net Pay.
From India, Kolkata
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15CTC includes all deductions, both from the employer and the employee. Gross Salary includes deductions only from the employee. Net Salary, or "in-hand salary," refers to the amount after all deductions have been made.
You should communicate to all your employees that the amount offered to them is their CTC, not their Gross or Net Pay.
From India, Kolkata
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Nowadays, most organizations are following the CTC system and not Gross Pay. This means the total cost to the company includes all expenses towards salaries and other benefits. Therefore, you should explain this concept to them and educate them accordingly.
From India, Bangalore
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From India, Bangalore
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PF not applicable on CTC 18.3.2014.pdf
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PF Judgement - Bom HC - Temp employee.doc