Hi Friends, we have recently received our appraisal letter and noticed that the PF (company contribution) is added to our gross salary and shown as a hike in our payslip. Upon receiving our payslip, we were shocked to notice that the PF is not added to the slip.
Question on PF and CTC
Is there any government norm or company decision that allows the PF (company contribution) to be shown as part of CTC? Please advise. I am not sure why this trick has been made by the management to fool the employees.
Regards
From India, Madras
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Question on PF and CTC
Is there any government norm or company decision that allows the PF (company contribution) to be shown as part of CTC? Please advise. I am not sure why this trick has been made by the management to fool the employees.
Regards
From India, Madras
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Hello Friend, these days, every employer is following this trick to show that they are paying a good amount to their employees. This tricky concept is called CTC, where they show everything they pay to employees. For CTC, there are no specific rules from the government; it all depends on the company policy. Some companies will add PLI (Performance Incentives) and bonus, apart from PF.
From India, Hyderabad
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86From India, Hyderabad
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I am surprised, or rather shocked, at the language used by the members of this forum. "Trick" or "every employer following this trick." If you do not know the concept, everything is a "trick." Also, if you do not trust your employer, again, everything is a "trick." Please refrain from using such language in public discussions.
Understanding CTC
The answer rests in the term used in the question itself: "CTC." For your understanding, the term means "Cost to Company." Therefore, it should include all the costs which the company incurs on an employee, whether capable of being represented in cash or kind. As mentioned by others, companies may take different approaches, but this does not change the meaning of the term CTC. I would recommend all to gain a better understanding of the term CTC, and that shall help you a lot.
Also, if you believe that you have been "tricked" or do not trust your employer, leave the company immediately. Every day you go to the office, you do more harm to yourself than to the company you work for.
From India, Bangalore
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Understanding CTC
The answer rests in the term used in the question itself: "CTC." For your understanding, the term means "Cost to Company." Therefore, it should include all the costs which the company incurs on an employee, whether capable of being represented in cash or kind. As mentioned by others, companies may take different approaches, but this does not change the meaning of the term CTC. I would recommend all to gain a better understanding of the term CTC, and that shall help you a lot.
Also, if you believe that you have been "tricked" or do not trust your employer, leave the company immediately. Every day you go to the office, you do more harm to yourself than to the company you work for.
From India, Bangalore
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It's a public site, and everyone has their own opinion. We are decent enough to call these cheating rules at least "tricks" as these 'rules' as per some people's language are never disclosed at the time of joining.
From India, Calcutta
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From India, Calcutta
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PF NO Contribution on CTC.pdf