Compensation Details Upon Joining
When I joined the company, they mentioned three points regarding compensation:
a. Cost to the company is Rs.x,xx,xxx/- per annum.
b. Your CTC will be reviewed annually and will come into effect at the end of one year of employment from the date of confirmation.
c. Changes in your compensation are discretionary and will be subject to effective performance, results during the period, and other relevant criteria.
PF Deduction Query
Now, they are saying that under the signed CTC contract, we are deducting 1800+1800=3600 as the PF amount. Is this right? Please help.
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When I joined the company, they mentioned three points regarding compensation:
a. Cost to the company is Rs.x,xx,xxx/- per annum.
b. Your CTC will be reviewed annually and will come into effect at the end of one year of employment from the date of confirmation.
c. Changes in your compensation are discretionary and will be subject to effective performance, results during the period, and other relevant criteria.
PF Deduction Query
Now, they are saying that under the signed CTC contract, we are deducting 1800+1800=3600 as the PF amount. Is this right? Please help.
Acknowledge(0)Amend(0)
Understanding CTC Components
If you are under the CTC pattern, both your monthly subscription and the equivalent employer's contribution of 12% towards EPF are covered as components of 'Cost to Company' (CTC). On the other hand, the contribution towards gratuity is payable to you only after you complete 5 years of continuous service without a break. It is not payable monthly in 'take-home pay' but is part of CTC. Likewise, any insurance premium for you is part of CTC but not payable in 'take-home pay'.
Reviewing Your Appointment Order
If your appointment order lists out CTC and mentions it as 'subject to revision on the basis of effective performance and results under the 'performance review' system and has been accepted by you, you will have no discretion to dispute them now. You should have studied before accepting what your 'monthly take-home' and the 'annual charges' are covered under CTC, which could have shown the difference between these two sums. Had you done this scrutiny, you could have been clearer about the intricacies involved.
From India, Bangalore
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1159If you are under the CTC pattern, both your monthly subscription and the equivalent employer's contribution of 12% towards EPF are covered as components of 'Cost to Company' (CTC). On the other hand, the contribution towards gratuity is payable to you only after you complete 5 years of continuous service without a break. It is not payable monthly in 'take-home pay' but is part of CTC. Likewise, any insurance premium for you is part of CTC but not payable in 'take-home pay'.
Reviewing Your Appointment Order
If your appointment order lists out CTC and mentions it as 'subject to revision on the basis of effective performance and results under the 'performance review' system and has been accepted by you, you will have no discretion to dispute them now. You should have studied before accepting what your 'monthly take-home' and the 'annual charges' are covered under CTC, which could have shown the difference between these two sums. Had you done this scrutiny, you could have been clearer about the intricacies involved.
From India, Bangalore
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