The PF officer insisted on keeping basic as 51% of fixed CTC (fixed CTC = Gross salary + PF employer contribution + Gratuity Contribution).
Doubts:
1) Can we keep gratuity contribution as a part of fixed CTC?
2) As PF is calculated on the increased basic take-home, have been reduced. Is it mandatory to keep basic as 51% for PF calculation?
Please reply ASAP.
From India, Hyderabad
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Doubts:
1) Can we keep gratuity contribution as a part of fixed CTC?
2) As PF is calculated on the increased basic take-home, have been reduced. Is it mandatory to keep basic as 51% for PF calculation?
Please reply ASAP.
From India, Hyderabad
Acknowledge(0)Amend(0)
There is no ruling or act on the percentage of basic in CTC. It is generally considered as 40% for non-mentors and 50% for metro.
There is a risk in showing gratuity in CTC. Many employees have claimed gratuity after 3 or more years of service since it was shown as part of CTC.
From India, Mumbai
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47There is a risk in showing gratuity in CTC. Many employees have claimed gratuity after 3 or more years of service since it was shown as part of CTC.
From India, Mumbai
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Gratuity-Leave calculation on CTC-Rev..xls
PF NO Contribution on CTC.pdf