Dear All, i wanted to know that PF Employer Share is Contribute by Employer or Employee. Because some company show both the contribute from Employee. it that write or not? Regards Jesmin
From India, Surat
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2From India, Surat
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Most private companies offer compensation on a CTC basis, right? In this case, both contributions are part of the CTC, and it will not make any difference whether the Employee Contribution is different from the Employer Contribution. You can even find Gratuity as part of the CTC.
From India, Bangalore
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From India, Bangalore
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Hi Jesmin, If both the contributions are deducted from Gross then it is wrong. Please check.
From India, Hyderabad
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From India, Hyderabad
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Hi, Jasmin first see the Salary break up and then see Employer share also calculated on Same Basic as calculated from employee, if its in this process then its wrong way.
From India, Mumbai
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From India, Mumbai
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Please refer to Para 31 of the EPF Scheme. It is as follows:
"Employer's Share Not to Be Deducted from the Members
Notwithstanding any contract to the contrary, the employer shall not be entitled to deduct the employer's contribution from the wage of a member or otherwise to recover it from him."
From India, Madras
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"Employer's Share Not to Be Deducted from the Members
Notwithstanding any contract to the contrary, the employer shall not be entitled to deduct the employer's contribution from the wage of a member or otherwise to recover it from him."
From India, Madras
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Thank you all for your helpful reply. if both the contribution deducted from our salary then what should i do.? i have to tell my HR or Complain some where.?
From India, Surat
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From India, Surat
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Hi, directly don’t think about that, if both the contributions is deducting from Employe then you clear with your HR. your concept will be clear.
From India, Mumbai
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From India, Mumbai
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Understanding the Difference Between "Gross" Salary and "CTC"
Please understand that there is a difference between "Gross" salary and "CTC." The gross salary is the salary that you earn, and PF is deducted from the basic component of the earned salary. The law prohibits the deduction of employer contributions from your salary. For example, suppose you have earned Rs 4000 as basic; then Rs 480 will be deducted from your salary, and the employer has to pay Rs 480. The employer cannot deduct Rs 960 from your salary.
What is CTC?
The CTC is the COST TO COMPANY and includes all the costs incurred by the company by hiring you. It will include your gross salary, PF payable by the employer, ESIC (employer component), bonus, gratuity, transport facility, etc. It will be clear that the company can include any components that they incur as costs in calculating your CTC. Hence, if the PF payable by the employer is shown in CTC, it will not violate any law.
From India, Panaji
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Please understand that there is a difference between "Gross" salary and "CTC." The gross salary is the salary that you earn, and PF is deducted from the basic component of the earned salary. The law prohibits the deduction of employer contributions from your salary. For example, suppose you have earned Rs 4000 as basic; then Rs 480 will be deducted from your salary, and the employer has to pay Rs 480. The employer cannot deduct Rs 960 from your salary.
What is CTC?
The CTC is the COST TO COMPANY and includes all the costs incurred by the company by hiring you. It will include your gross salary, PF payable by the employer, ESIC (employer component), bonus, gratuity, transport facility, etc. It will be clear that the company can include any components that they incur as costs in calculating your CTC. Hence, if the PF payable by the employer is shown in CTC, it will not violate any law.
From India, Panaji
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Understanding CTC and Employer Contributions
CTC is a financial term—Cost to the Company—that means whatever expenses are incurred on an employee need to be included in the CTC. PF, Gratuity, and other estimated legal expenses should also be taken into account.
When negotiating, it is advisable to focus on the net take-home salary or gross salary to avoid confusion and ensure a clear understanding of the best offer.
If you have accepted an offer based on CTC, the organization's PF contribution must also be considered. This is why legal action cannot be taken against the employer.
From India, Mumbai
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CTC is a financial term—Cost to the Company—that means whatever expenses are incurred on an employee need to be included in the CTC. PF, Gratuity, and other estimated legal expenses should also be taken into account.
When negotiating, it is advisable to focus on the net take-home salary or gross salary to avoid confusion and ensure a clear understanding of the best offer.
If you have accepted an offer based on CTC, the organization's PF contribution must also be considered. This is why legal action cannot be taken against the employer.
From India, Mumbai
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In addition to Suhas Khambe, I would also mention that CTC is a financial term. In this concept, only the employer share component should be considered, i.e., gross salary + EPF contribution (employer share with admin charges) + ESIC (employer share) or group insurance cost on a monthly basis + leave encashment on a monthly basis + gratuity share on a monthly basis + bonus or ex-gratia component on a monthly basis. Any other expenditure from the employer on the employees must be taken into consideration while calculating CTC.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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PF NO Contribution on CTC.pdf