Hi all,
I have a query buzzing my mind... always... Can anyone really help me out with this? It is related to PF.
Now, when we get employed, our employer very wonderfully says, informs, or gives in writing - PF (employer contribution) - X amount in the CTC of the employee. Later in the appointment letter, there is another deduction from your CTC as an employee contribution.
Now tell me one thing... What is the employer contributing? Because the part that is believed to be their contribution is actually a part of the employee CTC, and then again, the employee gets their PF contribution deducted. Isn't this cheating or fooling around? Please correct me if I am wrong.
Thanks,
Aayush Dubey
From India, New Delhi
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2I have a query buzzing my mind... always... Can anyone really help me out with this? It is related to PF.
Now, when we get employed, our employer very wonderfully says, informs, or gives in writing - PF (employer contribution) - X amount in the CTC of the employee. Later in the appointment letter, there is another deduction from your CTC as an employee contribution.
Now tell me one thing... What is the employer contributing? Because the part that is believed to be their contribution is actually a part of the employee CTC, and then again, the employee gets their PF contribution deducted. Isn't this cheating or fooling around? Please correct me if I am wrong.
Thanks,
Aayush Dubey
From India, New Delhi
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Hi Ayush,
Yeah, you're right, whatever the X amount deducting in your salary, the same amount the employer has to contribute.
I have some points to share with you:
1. Some organizations shall take the basic of above 6500. They will deduct 780/- from the employee's side, and the same amount will be contributed by the employer on both sides. (If the basic is less than 6500, it will be considered as 12% on both sides).
2. Some organizations will add PF contribution amount in your CTC itself (24% on both sides), which will be deducted from your part. Once you plan to accept the new offer, you have to check in detail with them about the PF part.
Thanks, Venkatesh
From India, Madras
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Yeah, you're right, whatever the X amount deducting in your salary, the same amount the employer has to contribute.
I have some points to share with you:
1. Some organizations shall take the basic of above 6500. They will deduct 780/- from the employee's side, and the same amount will be contributed by the employer on both sides. (If the basic is less than 6500, it will be considered as 12% on both sides).
2. Some organizations will add PF contribution amount in your CTC itself (24% on both sides), which will be deducted from your part. Once you plan to accept the new offer, you have to check in detail with them about the PF part.
Thanks, Venkatesh
From India, Madras
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dear the deduction ol employer share from employees account is illegal. in such cases the complain should be made to concerned RPFC regards rajanikant mishra
From India, Delhi
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From India, Delhi
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Hi,
Strictly speaking, an employer's contribution is definitely part of the CTC since the company is incurring the cost towards you. However, the company's contribution should by no means be deducted from your salary, nor is it a part of your salary. What is deducted from your salary is the employee's own contribution. This is certainly dishonest and punishable under the PF Act. It should immediately be brought to the attention of PF authorities for redressal. I have noticed that many companies are engaging in this illegal practice, and many of our friends have raised this issue in this forum.
Thank you.
From India, Calcutta
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Strictly speaking, an employer's contribution is definitely part of the CTC since the company is incurring the cost towards you. However, the company's contribution should by no means be deducted from your salary, nor is it a part of your salary. What is deducted from your salary is the employee's own contribution. This is certainly dishonest and punishable under the PF Act. It should immediately be brought to the attention of PF authorities for redressal. I have noticed that many companies are engaging in this illegal practice, and many of our friends have raised this issue in this forum.
Thank you.
From India, Calcutta
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Dear friend,
PF is purely a legal issue, and both contributions are necessary. CTC is purely between employee and employer; there is no mention of CTC in the PF act. Therefore, there is a need to change the terminology and the law. We can't say it is cheating, but it is a type of understanding between two groups during employment. The employee needs employment, and only then does he agree to the terms of CTC.
Thank you.
From India
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PF is purely a legal issue, and both contributions are necessary. CTC is purely between employee and employer; there is no mention of CTC in the PF act. Therefore, there is a need to change the terminology and the law. We can't say it is cheating, but it is a type of understanding between two groups during employment. The employee needs employment, and only then does he agree to the terms of CTC.
Thank you.
From India
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