Hello Respected Members :)
I have a query regarding the PF. My basic salary is 72000. My company deducts 720/rs monthly from the salary, and they also deduct the same amount, 720, for my PF. Well, I consulted with my friends, and they told me that the company pays the other amount in employee PF. But here in my company, they deduct the same amount from my salary. As I am new to this environment, please help me understand why they do this. Should I complain about this? Please reply, and I will be very thankful for your time.
From India, Gurgaon
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I have a query regarding the PF. My basic salary is 72000. My company deducts 720/rs monthly from the salary, and they also deduct the same amount, 720, for my PF. Well, I consulted with my friends, and they told me that the company pays the other amount in employee PF. But here in my company, they deduct the same amount from my salary. As I am new to this environment, please help me understand why they do this. Should I complain about this? Please reply, and I will be very thankful for your time.
From India, Gurgaon
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Hi G,
Yeah, they say that 12% is the employee's contribution, and 13.6% of the basic is the employer's contribution, but they deduct it from your salary because they say it's part of CTC. It is the norm in the industry, and everywhere it's the same even CMM level 5 companies do the same.
Thanks,
Anupama V
From India, Mumbai
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Yeah, they say that 12% is the employee's contribution, and 13.6% of the basic is the employer's contribution, but they deduct it from your salary because they say it's part of CTC. It is the norm in the industry, and everywhere it's the same even CMM level 5 companies do the same.
Thanks,
Anupama V
From India, Mumbai
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Dear G,
In your post, you have not mentioned whether Rs. 72,000 basic is for annual or monthly?
From your question, I came to a conclusion that your company has given the said amount as CTC (Cost to the Company) per annum, which is Rs. 72,000 as salary or Rs. 6,000 per month. This amount includes your side PF and employer's PF contributions as well. That's why they have considered your salary as basic salary and deducted Rs. 720 on your part of PF (i.e., 12% of the above-mentioned Rs. 6,000 per month) and Rs. 720 as the employer's part of PF.
This is a new system being followed by the HR people.
ramravind
From India, Selam
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3In your post, you have not mentioned whether Rs. 72,000 basic is for annual or monthly?
From your question, I came to a conclusion that your company has given the said amount as CTC (Cost to the Company) per annum, which is Rs. 72,000 as salary or Rs. 6,000 per month. This amount includes your side PF and employer's PF contributions as well. That's why they have considered your salary as basic salary and deducted Rs. 720 on your part of PF (i.e., 12% of the above-mentioned Rs. 6,000 per month) and Rs. 720 as the employer's part of PF.
This is a new system being followed by the HR people.
ramravind
From India, Selam
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