Query Regarding PF Contribution
I have a query regarding PF contribution. Let's consider an example:
Below are the salary/increment details of an employee "X" in ABC (a third party) hired by a company through a third party:
- Basic Salary: 43716
- HRA: 17484
- Conveyance: 19200
- Telephone Allowance: 4800
- Special Allowance: 74844
- Local Conveyance: 12000
- Employer's Contribution To PF: 18552
- ESIC: 8184
- Total Annual CTC: 198780
Legality of Including Employer's PF Contribution in CTC
I want to inquire whether it is legal or illegal to add the employer's contribution to PF in the gross CTC. As far as I understand, the employee's and employer's contributions should be equally shared for PF. However, in this case, the company is providing CTC with the addition of the PF contribution from the employer. How justified is this? I kindly request your guidance or advice on this matter at the earliest.
Thank you.
From India, Ahmedabad
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2I have a query regarding PF contribution. Let's consider an example:
Below are the salary/increment details of an employee "X" in ABC (a third party) hired by a company through a third party:
- Basic Salary: 43716
- HRA: 17484
- Conveyance: 19200
- Telephone Allowance: 4800
- Special Allowance: 74844
- Local Conveyance: 12000
- Employer's Contribution To PF: 18552
- ESIC: 8184
- Total Annual CTC: 198780
Legality of Including Employer's PF Contribution in CTC
I want to inquire whether it is legal or illegal to add the employer's contribution to PF in the gross CTC. As far as I understand, the employee's and employer's contributions should be equally shared for PF. However, in this case, the company is providing CTC with the addition of the PF contribution from the employer. How justified is this? I kindly request your guidance or advice on this matter at the earliest.
Thank you.
From India, Ahmedabad
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Dear Sir V.M. Lakshminarayanan,
PF is added to the gross salary, as you can see, there is a gross addition of 198780 with PF contribution by the employer. That's why I'm asking, is the tactic used by the employer/third-party agency legal or not?
From India, Ahmedabad
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PF is added to the gross salary, as you can see, there is a gross addition of 198780 with PF contribution by the employer. That's why I'm asking, is the tactic used by the employer/third-party agency legal or not?
From India, Ahmedabad
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Dear Friend,
Please understand the difference between Gross and CTC. Add all your components (Gross = Basic + HRA + Conveyance + Telephone Allowance + Special Allowances + Local Conveyance). CTC = Gross + Employer contribution. In your case, your gross amount is 172,044 (monthly 14,337).
From India, Mumbai
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Please understand the difference between Gross and CTC. Add all your components (Gross = Basic + HRA + Conveyance + Telephone Allowance + Special Allowances + Local Conveyance). CTC = Gross + Employer contribution. In your case, your gross amount is 172,044 (monthly 14,337).
From India, Mumbai
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PF NO Contribution on CTC.pdf