Hello dear friends, Can any body tell me is employer’s contribution towards PF of the employee included in CTC???? Looking forward you valuable answers.....!!!!
From India, Visakhapatnam
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3From India, Visakhapatnam
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Hi Singh, Employee and Employer PF contribution is included in the CTC, Just for understanding even variable components are included in the stack sheet (CTC) Have a nice weekend Chary
From India, Bangalore
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From India, Bangalore
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Dear SK,
CTC means "COSTS TO COMPANY."
Normally, all corporates budget the cost of an employee before engaging them so that they are aware of the actual costs they would incur upon employing them. This would include the employee's pay package (Basic, HRA, Conveyance, Medical, and other Allowances). In addition to this, there would be additional costs incurred by the company, such as Employers Provident Contribution, Gratuity Provision, and Statutory Bonus Provision. These costs are the liability of the company and are therefore shown in the entitlement sheet attached to the appointment letter. These costs would not be reflected in your salary slips as they are company costs.
Moreover, the addition of these costs to the entitlement sheet also inflates the figures in the CTC, which many employees may not realize. Normally, these costs are budgeted to each individual department that hires such employees so that the costs versus department output (productivity) can be analyzed.
From India, Pune
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CTC means "COSTS TO COMPANY."
Normally, all corporates budget the cost of an employee before engaging them so that they are aware of the actual costs they would incur upon employing them. This would include the employee's pay package (Basic, HRA, Conveyance, Medical, and other Allowances). In addition to this, there would be additional costs incurred by the company, such as Employers Provident Contribution, Gratuity Provision, and Statutory Bonus Provision. These costs are the liability of the company and are therefore shown in the entitlement sheet attached to the appointment letter. These costs would not be reflected in your salary slips as they are company costs.
Moreover, the addition of these costs to the entitlement sheet also inflates the figures in the CTC, which many employees may not realize. Normally, these costs are budgeted to each individual department that hires such employees so that the costs versus department output (productivity) can be analyzed.
From India, Pune
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yes offcourse employer contribution towards pf is part of employee ctc bcs its riemburse to employee only at the time of withdrawl\
From India, Delhi
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From India, Delhi
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Can anybody please guide me....what all documents are required for provident fund in Hong kong?
From India, Delhi
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From India, Delhi
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Dear Friend,
In my view, the employer's contribution should not be included in CTC because the P.F. is only a benefit given to an employee and is also a statutory requirement.
On the other hand, the purpose of enrolling in the Provident Fund is solely to derive the benefits as per the P.F. Act. In the P.F., the employee receives double the share through the employer's contribution, which accumulates in the employee's P.F. account.
Secondly, if an employer wishes to contribute his share from the employee's money, then there is no meaning in enrolling the employee in the P.F. This would result in a long waiting period for withdrawal, overcoming a month's process. Instead, the employee can make a smart investment by saving both contributions in a recurring deposit account. This way, the employee can withdraw the amount whenever needed, rather than approaching the old employer for withdrawal if it is accumulated under P.F.
Please correct me if I am wrong.
Thanks and Regards,
T. PRABHAKAR.
From India, Madras
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In my view, the employer's contribution should not be included in CTC because the P.F. is only a benefit given to an employee and is also a statutory requirement.
On the other hand, the purpose of enrolling in the Provident Fund is solely to derive the benefits as per the P.F. Act. In the P.F., the employee receives double the share through the employer's contribution, which accumulates in the employee's P.F. account.
Secondly, if an employer wishes to contribute his share from the employee's money, then there is no meaning in enrolling the employee in the P.F. This would result in a long waiting period for withdrawal, overcoming a month's process. Instead, the employee can make a smart investment by saving both contributions in a recurring deposit account. This way, the employee can withdraw the amount whenever needed, rather than approaching the old employer for withdrawal if it is accumulated under P.F.
Please correct me if I am wrong.
Thanks and Regards,
T. PRABHAKAR.
From India, Madras
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Dear SK,
CTC (Cost to Company) is the cost incurred on an employee. Generally, when a person is offered employment by a company, it is the CTC that is negotiated between the company and the individual. Only after he/she agrees to it, the company provides employment. So, it is an agreement between the company and the employee. Of course, the employer cannot deduct their share of PF from the employee's salary; hence, the deduction of the employer's share of PF will never be reflected in salary slips. Therefore, it is essential to understand what your salary and CTC will be at the time of joining. However, CTC also includes benefits provided by the company to an employee, making it an inflated figure compared to your salary.
Thank you.
From India, Delhi
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CTC (Cost to Company) is the cost incurred on an employee. Generally, when a person is offered employment by a company, it is the CTC that is negotiated between the company and the individual. Only after he/she agrees to it, the company provides employment. So, it is an agreement between the company and the employee. Of course, the employer cannot deduct their share of PF from the employee's salary; hence, the deduction of the employer's share of PF will never be reflected in salary slips. Therefore, it is essential to understand what your salary and CTC will be at the time of joining. However, CTC also includes benefits provided by the company to an employee, making it an inflated figure compared to your salary.
Thank you.
From India, Delhi
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Hi Mr. Singh, Yes. Employer’s PF Contribution (12% of Basic Salary ) and ESIC Contribution (4.75% of gross salary ) will be added in the CTC Calculation. Rgds, Prabha
From India, Madras
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From India, Madras
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HelloYes PF from employers contribution comes in CTC,but from employees side do not calculate in CTC
From India, Gurgaon
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From India, Gurgaon
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Yes, PF contribution of Employer's is included in CTC (Cost to Company). CTC breakup as per below: Basaic 10000.00 HRA (50%) 5000.00 Conveyance 800.00 Medical Allowance 1250.00 Gross Salary 17050.00 Add: PF @ 12% of Basic (8.25+3.75) 1200.00 Add: ESIC Cont. @ 4.75% NIL (If Gross salary does not exceed Rs. 10,000/-) Current CTC (Gross Salary + Cont. of Empr's) 18250.00 When salary in hand will be calculated then only PF & ESIC of employee's contribution will be deducted, as exemplified. Gross Salary 17050.00 Less: PF @ 12% of Basic 1200.00 Salary in Hand 15850.00 FACTS are that " CTC Rs. 18250/- Gross Salary Rs. 17050/- Salary in Hand Rs. 15850/- Regards, Gyasuddin
From India, Jalandhar
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From India, Jalandhar
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Dear Singh,
Normally, every time we hear about the total CTC or your package being a certain amount, that means it includes all the annual perks provided by the employer, which includes the employer's PF contribution as well. Additionally, some employers also include Gratuity contribution (4.8%).
So, when negotiating the CTC, one should also negotiate about the take-home salary.
Regards, Rajanikanth
Asst Manager- HR
From India, Hyderabad
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Normally, every time we hear about the total CTC or your package being a certain amount, that means it includes all the annual perks provided by the employer, which includes the employer's PF contribution as well. Additionally, some employers also include Gratuity contribution (4.8%).
So, when negotiating the CTC, one should also negotiate about the take-home salary.
Regards, Rajanikanth
Asst Manager- HR
From India, Hyderabad
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Cost to the Company includes the following:
- Gross Salary
- Fixed Bonus and Incentives
- Employer's contribution to PF
- Employer's contribution to ESI
- Employer's contribution to Gratuity
- Employer's contribution to Medical Insurance Policies
- Employer's contribution to Superannuation Policies
- Employer's contribution to Life Insurance Policies
- Any other benefits that the employer offers to the employee
Regards,
Bala
Cogzidel Consultancy Services
From India, Madras
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- Gross Salary
- Fixed Bonus and Incentives
- Employer's contribution to PF
- Employer's contribution to ESI
- Employer's contribution to Gratuity
- Employer's contribution to Medical Insurance Policies
- Employer's contribution to Superannuation Policies
- Employer's contribution to Life Insurance Policies
- Any other benefits that the employer offers to the employee
Regards,
Bala
Cogzidel Consultancy Services
From India, Madras
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I agree with Sachin... since CTC means what you are costing to the company the emplyers share of PF is also included in it.. Although it is not reflected in the Salary slip.
From India, Ludhiana
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From India, Ludhiana
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12% employee 12% employer= 8.33% Pension scheme and 3.67% pf 1.16% Admin charge 0.50% edli scheme jagdish padhiyar-MLW
From India, Jamnagar
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From India, Jamnagar
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CTC in itself denotes Cost to Company. It includes direct as well as indirect costs that are going to be incurred by the company for the respective employee. Direct Cost is his/her Gross Salary. Whereas Indirect costs may have a number of attributes, some of which are:
- Gratuity Provision
- Employer PF contribution
- Employer ESIC Contribution
- Provision of Bonus if applicable
- Medical Insurance
- Group Personal Insurance
- LTA
- and any other applicable costs.
Regards,
Amit Seth.
From India, Ahmadabad
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- Gratuity Provision
- Employer PF contribution
- Employer ESIC Contribution
- Provision of Bonus if applicable
- Medical Insurance
- Group Personal Insurance
- LTA
- and any other applicable costs.
Regards,
Amit Seth.
From India, Ahmadabad
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Yes Employers contribution can be added to CTC, it can be considered as a compnay policy as their is no Statutory rules for it
From India, Mumbai
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From India, Mumbai
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CTC (Cost to Company) is the cost incurred on an employee. So, the employer normally adds their PF contribution in the package itself. PF is not the only thing added in CTC; components like LE, employer contribution of ESI, gratuity, and LTA are also included in the employee's package.
From India, Mumbai
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From India, Mumbai
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Yes....it is included in CTC. CTC means all the emoluments/benefits provided by employer to employee in terms of money. With regards, V.R.Murthy Akella
From India
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From India
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Hi All,
Only 12% of the employer contribution should be added in CTC. The Administration charges: 1.10%, EDLI Charges: 0.50%, and EDLI Inspection Charges: 0.01% should not be included in the CTC.
Regards,
Deepak
From India, Calcutta
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Only 12% of the employer contribution should be added in CTC. The Administration charges: 1.10%, EDLI Charges: 0.50%, and EDLI Inspection Charges: 0.01% should not be included in the CTC.
Regards,
Deepak
From India, Calcutta
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i dont think more discussion required on this matter. because the word CTC itself says = "cost to the company". so anthing related to employment cost wil come under CTC
From India, Bangalore
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From India, Bangalore
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Dear SK,
Please find below:
Basic Salary 1200
House Rent Allowance 250
Conveyance Allowance 200
Medical Allowance 100
Special Allowance 100
Other Allowance 100
Gross Salary 1950
Benefits
PF (Employer's Contribution) 144
ESI (Employer's Contribution) 93
Insurance 100
Total 337
CTC 2287
Deductions
PF (Employee's Contribution) 144
ESI (Employee's Contribution) 35
Professional Tax 13
Total Deductions 192
Net Salary (Gross - Deductions) 1758
Regards,
Dinesh.P
From India, Madras
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Please find below:
Basic Salary 1200
House Rent Allowance 250
Conveyance Allowance 200
Medical Allowance 100
Special Allowance 100
Other Allowance 100
Gross Salary 1950
Benefits
PF (Employer's Contribution) 144
ESI (Employer's Contribution) 93
Insurance 100
Total 337
CTC 2287
Deductions
PF (Employee's Contribution) 144
ESI (Employee's Contribution) 35
Professional Tax 13
Total Deductions 192
Net Salary (Gross - Deductions) 1758
Regards,
Dinesh.P
From India, Madras
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CTC means Cost to Company. So, direct or indirect, statutory or non-statutory costs can be shown as CTC, which are shared by the company. This is the normal practice in India. Even Gratuity contributions, GPA, Mediclaim premiums, the cost of a subsidized canteen, or uniform can also be incorporated in CTC. There is no legal binding to show or not to show.
Ulhas Chandratre
Senior HR Professional, Pune
From India, Pune
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Ulhas Chandratre
Senior HR Professional, Pune
From India, Pune
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hi, 12% of PF is deducted and it reflect in your salary slip, the only thing is that employer’s contritution 13.61% is not reflect in your salary slip bcoz this is the company contribution.
From India, New Delhi
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From India, New Delhi
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The employer’s contribution should be included in CTC because the cost is contributed by the employer. So, it should be included. regards, Soumitro Mukherjee
From India, New Delhi
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From India, New Delhi
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The employer’s contribution should be included in CTC because it is contributed by the employer. Regards, Soumitro Mukherjee
From India, New Delhi
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From India, New Delhi
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Consider CTC as Rs. 2,00,000.00. Then BASIC is 50% of CTC: Rs. 100,000.00. HRA is 35% of BASIC: Rs. 35,000.00. PF EMPLR is 12% of BASIC: Rs. 9,360.00 if Restricted, else Rs. 12,000.00 OR 13.61% of BASIC. Put the remaining amount in gratuity and other allowances.
From India, Bangalore
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From India, Bangalore
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dear, PF contribution is included in CTC as it form a Cost to company. Employer contribute 13.61% against the employee contribution of 12% of basic & DA.:icon1: Regards Vinod Singh
From India, Pune
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From India, Pune
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Hi friend, This is the Rizwan working as a Senior Executive HR, Offcourse Employer’s contribution of PF is the Part of CTC. Regards Rizwan
From India, Haryana
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From India, Haryana
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Dear SK,
You have received a number of replies, and among them, the input from Ashish Ovekaker is the most comprehensive and reflective of 'CTC'. I fully endorse his views. All costs related to an employee would be 'cost to company' - and it has become a practice to ignore some basic common benefits like uniforms, subsidized food, annual gifts, cost of festivals/personal advances, etc. They are more by exception than the rule.
Venkatrangan
From India, Thana
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You have received a number of replies, and among them, the input from Ashish Ovekaker is the most comprehensive and reflective of 'CTC'. I fully endorse his views. All costs related to an employee would be 'cost to company' - and it has become a practice to ignore some basic common benefits like uniforms, subsidized food, annual gifts, cost of festivals/personal advances, etc. They are more by exception than the rule.
Venkatrangan
From India, Thana
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First of all, I would like to mention why CTC is designed as BASIC+DA, medical allowance, HRA, etc. It is because otherwise there would not be any tax exemption.
PF contribution from the employer's side is in no way to be counted in the CTC of the employee.
From India, Surat
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PF contribution from the employer's side is in no way to be counted in the CTC of the employee.
From India, Surat
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Hi all, In recent days these things have started up,wherein employer shows his contribution towards PF as part of CTC just to inflate the package.
From India, Bangalore
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From India, Bangalore
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Dear Singh, P.F. contribution employers' side is a part of CTC . each and every benifits passes to employee will cost to company & it will be part of CTC. THANX 'N' REGARDS MANU BAGHEL
From India
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From India
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Dear all,
PF can be considered as CTC. CTC means Cost to Company. The expenditure on employees, whether statutory or optional, is irrelevant in concluding CTC. However, it would be unethical if you were to show the employer's contribution in CTC directly. First of all, calculate the Gross salary. Then, you can add the employer's contribution to the Gross salary. This way, you can conclude the CTC.
Regards,
P. Sathish Kumar
From India, Jaipur
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PF can be considered as CTC. CTC means Cost to Company. The expenditure on employees, whether statutory or optional, is irrelevant in concluding CTC. However, it would be unethical if you were to show the employer's contribution in CTC directly. First of all, calculate the Gross salary. Then, you can add the employer's contribution to the Gross salary. This way, you can conclude the CTC.
Regards,
P. Sathish Kumar
From India, Jaipur
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Dear Yasmin, R u sure abt the contribution of employer??? It is same as employees contribution i.e 12% Regards Supriya
From India, Thana
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From India, Thana
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Dear Supriya,
The additional 1.61% is the administration charge paid to the CPF organization that a company has to bear. To understand better, please go through the earlier posts CAREFULLY.
Regards.
From India, Delhi
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The additional 1.61% is the administration charge paid to the CPF organization that a company has to bear. To understand better, please go through the earlier posts CAREFULLY.
Regards.
From India, Delhi
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All the salary heads will come under CTC. Both Employers' and Employees' contributions are added into the CTC, but the Employer's Contribution will be shown as a separate head, whereas the Employees' contribution will not be shown as a separate head.
Regards, Ignatius L.
"Simplicity should be the fashion, style, and way of living for all."
From India, Madras
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Regards, Ignatius L.
"Simplicity should be the fashion, style, and way of living for all."
From India, Madras
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PF NO Contribution on CTC.pdf
Employee Benefits.doc