Hi,
I am working in a manufacturing company as an HR executive. At the time of joining, I was told that I would get 12506 as gross, with 1166 for medical and LTA, but it would not be shown on my salary slip.
But now, I am getting basic 7000, HRA 2100, and conv. 1400, which I can access after six months. They are saying that 1680 is deducted for PF, but I am not sure what they are trying to convey. I haven't received the salary breakup either. Please shed some light on my issue.
From India, Chandigarh
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18I am working in a manufacturing company as an HR executive. At the time of joining, I was told that I would get 12506 as gross, with 1166 for medical and LTA, but it would not be shown on my salary slip.
But now, I am getting basic 7000, HRA 2100, and conv. 1400, which I can access after six months. They are saying that 1680 is deducted for PF, but I am not sure what they are trying to convey. I haven't received the salary breakup either. Please shed some light on my issue.
From India, Chandigarh
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Dear Amitranjan,
There are four issues involved in your post:
(1) Policy related to the salary slip
(2) Allowance involvement
(3) PF Issue
(4) Salary break-up
Detailed explanations are as follows:
Point #1: It depends upon the company's policy, which break-ups they are mentioning in the salary slip. Whatever amount is paid to you through a cheque should ideally be mentioned in the salary slip. For cash reimbursements, your signatures are a must on the vouchers.
Point #2: The conveyance allowance that they have told you will be given to you after the completion of 6 months is a company policy. Ideally, it should be and must be paid to you from day one.
Point #3: Your company is deducting 24% from your basic salary for the PF. Legally, a company should deduct only 12% of the basic salary for the PF. The rest is at the discretion of the employee whether they allow the company to deduct more than 12% from the basic salary towards PF. Confirm from your company whether they are also contributing at the same ratio. I personally feel they are not. If yes, then I think you must allow the company to go ahead purely because, in the end, i.e. once you withdraw the PF amount or transfer the PF amount, you are on the profit side. Confirm it; if they are not, you have the full right to give a written letter to the HR Head stating, "Please deduct only 12% and not 24%."
Point #4: Once a company gives an offer letter, they must inform the candidate concerned about the salary breakups. At the appointment letter stage, it should definitely be mentioned.
Speak to them about these issues.
I hope this will help you.
Inputs from other members are also requested so that I myself can enhance my knowledge/information.
Thanks & regards,
Rekha
From India, Delhi
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There are four issues involved in your post:
(1) Policy related to the salary slip
(2) Allowance involvement
(3) PF Issue
(4) Salary break-up
Detailed explanations are as follows:
Point #1: It depends upon the company's policy, which break-ups they are mentioning in the salary slip. Whatever amount is paid to you through a cheque should ideally be mentioned in the salary slip. For cash reimbursements, your signatures are a must on the vouchers.
Point #2: The conveyance allowance that they have told you will be given to you after the completion of 6 months is a company policy. Ideally, it should be and must be paid to you from day one.
Point #3: Your company is deducting 24% from your basic salary for the PF. Legally, a company should deduct only 12% of the basic salary for the PF. The rest is at the discretion of the employee whether they allow the company to deduct more than 12% from the basic salary towards PF. Confirm from your company whether they are also contributing at the same ratio. I personally feel they are not. If yes, then I think you must allow the company to go ahead purely because, in the end, i.e. once you withdraw the PF amount or transfer the PF amount, you are on the profit side. Confirm it; if they are not, you have the full right to give a written letter to the HR Head stating, "Please deduct only 12% and not 24%."
Point #4: Once a company gives an offer letter, they must inform the candidate concerned about the salary breakups. At the appointment letter stage, it should definitely be mentioned.
Speak to them about these issues.
I hope this will help you.
Inputs from other members are also requested so that I myself can enhance my knowledge/information.
Thanks & regards,
Rekha
From India, Delhi
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This is a common problem that arises when companies provide "CTC" details to employees. The employee may be shocked when they receive their payslip.
For example, if an employee is informed that their CTC is Rs. 5360 [Gross + employer pf contribution] with Basic: Rs. 3000, HRA: Rs. 1200, Conv.: Rs. 800, PF: Rs. 360 [employer contribution], what they actually receive is Rs. 4640 [gross - employee pf contribution] [Basic: Rs. 3000, HRA: Rs. 1200, Conv.: Rs. 800 - PF: Rs. 360 [employee PF contribution]]. Thus, they may feel that 24% of their basic is being deducted.
Regards, Sathya
From India, Madras
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For example, if an employee is informed that their CTC is Rs. 5360 [Gross + employer pf contribution] with Basic: Rs. 3000, HRA: Rs. 1200, Conv.: Rs. 800, PF: Rs. 360 [employer contribution], what they actually receive is Rs. 4640 [gross - employee pf contribution] [Basic: Rs. 3000, HRA: Rs. 1200, Conv.: Rs. 800 - PF: Rs. 360 [employee PF contribution]]. Thus, they may feel that 24% of their basic is being deducted.
Regards, Sathya
From India, Madras
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Hi,
I hope the below-mentioned break-up will be of some help to you. Your company has promised to pay you Rs. 12,506 per month, which is a gross CTC. PF (Employer's Contribution) is a part of your CTC.
- Basic: Rs. 7,000 per month
- HRA: Rs. 2,100 per month
- Cony: Rs. 1,400 per month
- LTA & Med: Rs. 1,166 per month
- PF (Employer's Contribution): Rs. 840 per month
The total comes to Rs. 12,506 per month, out of which your monthly take-home will be Rs. 9,660.
I hope the above breakdown clarifies your doubts to some extent.
Regards,
Sweetu Aggarwal
From India, Gurgaon
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I hope the below-mentioned break-up will be of some help to you. Your company has promised to pay you Rs. 12,506 per month, which is a gross CTC. PF (Employer's Contribution) is a part of your CTC.
- Basic: Rs. 7,000 per month
- HRA: Rs. 2,100 per month
- Cony: Rs. 1,400 per month
- LTA & Med: Rs. 1,166 per month
- PF (Employer's Contribution): Rs. 840 per month
The total comes to Rs. 12,506 per month, out of which your monthly take-home will be Rs. 9,660.
I hope the above breakdown clarifies your doubts to some extent.
Regards,
Sweetu Aggarwal
From India, Gurgaon
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Hi,
The calculation is okay. Regarding PF, it is okay. Try to understand what CTC, gross salary, take-home salary, and various legal deductions such as PF and PT are.
They are right. In case you need more information on this, do write back.
Jitendra Pomendkar
From United States, Boston
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The calculation is okay. Regarding PF, it is okay. Try to understand what CTC, gross salary, take-home salary, and various legal deductions such as PF and PT are.
They are right. In case you need more information on this, do write back.
Jitendra Pomendkar
From United States, Boston
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Salary breakup format.xls