Hi, I have a doubt regarding PF contribution by the employee and employer. My Cost to the Company (CTC) is Rs. 12,100, which includes the Employer's PF contribution of Rs. 711. I am supposed to get Rs. 9,840 as my "Take Home," but surprisingly, they are deducting PF from my Take-home salary with the same percentage once again. Is this right?
From India, Madras
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From India, Madras
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As per my knowledge, your PF amount should be 554 (Employee) + 554 (Employer - Pension and PF amount), totaling a deduction of 1108 for PF. Provided that PF contribution from the employer is part of the CTC, many companies nowadays include PF contributions from both the Employer and Employee in the CTC amount. Please check other deductions as well.
Also, apart from that, check whether ESIC is also deducted or not. Actually, that is compulsory for a monthly salary of 15718/- and PT. These are the minimal deductions that companies generally make. Please check your salary slip and let us know about other deductions.
Meanwhile, speak to HR and understand the proper bifurcations of your salary.
Regards,
Sonali V. Neve
[LinkedIn Profile](http://www.linkedin.com/profile/view?id=113089005&trk=hb_tab_pro_top)
From India, Pune
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9Also, apart from that, check whether ESIC is also deducted or not. Actually, that is compulsory for a monthly salary of 15718/- and PT. These are the minimal deductions that companies generally make. Please check your salary slip and let us know about other deductions.
Meanwhile, speak to HR and understand the proper bifurcations of your salary.
Regards,
Sonali V. Neve
[LinkedIn Profile](http://www.linkedin.com/profile/view?id=113089005&trk=hb_tab_pro_top)
From India, Pune
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Clarification on Pension Deduction
As per Ms. Sonali V. Neve, there is a mistake because the pension amount shouldn't be more than Rs. 541, which is deducted from a Rs. 6,500 wage.
Apart from this, if Nanda could share the salary structure or basic salary, then we will get the deduction details. Is whatever is going on right or wrong?
Sorry, Ms. Sonali V. Neve, but I feel the need to correct you.
Regards,
Ashwin.
From India, Pune
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As per Ms. Sonali V. Neve, there is a mistake because the pension amount shouldn't be more than Rs. 541, which is deducted from a Rs. 6,500 wage.
Apart from this, if Nanda could share the salary structure or basic salary, then we will get the deduction details. Is whatever is going on right or wrong?
Sorry, Ms. Sonali V. Neve, but I feel the need to correct you.
Regards,
Ashwin.
From India, Pune
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Thanks, all!
Salary Components
- Basic: Rs 5910
- HRA: Rs 1970
- Special Allowance: Rs 1170
- Conveyance Allowance: Rs 800
- Bonus: Rs 700
- Gross: Rs 10550
- PF - Employer Contribution: Rs 709
- ESI - Employer Contribution: Rs 468
- Gratuity: Rs 284
- CTC: Rs 12011
For the month of June, my company deducted Rs 658 as my PF (Employee contribution) and Rs 170 (Employee contribution) as my ESI from my Gross (i.e., Rs 10550).
From India, Madras
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Salary Components
- Basic: Rs 5910
- HRA: Rs 1970
- Special Allowance: Rs 1170
- Conveyance Allowance: Rs 800
- Bonus: Rs 700
- Gross: Rs 10550
- PF - Employer Contribution: Rs 709
- ESI - Employer Contribution: Rs 468
- Gratuity: Rs 284
- CTC: Rs 12011
For the month of June, my company deducted Rs 658 as my PF (Employee contribution) and Rs 170 (Employee contribution) as my ESI from my Gross (i.e., Rs 10550).
From India, Madras
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CTC Calculation and PF Deduction
CTC calculation is okay (admin charges not included), but the calculation of PF is unclear. If it is deducted based on working days, then on what basis? Despite this, the calculation does not match the deduction for June '12 (there is a mistake). What are your working days for the month?
From India, Delhi
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CTC calculation is okay (admin charges not included), but the calculation of PF is unclear. If it is deducted based on working days, then on what basis? Despite this, the calculation does not match the deduction for June '12 (there is a mistake). What are your working days for the month?
From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx