Dear Seniors,
I want to ask query regarding PF deduction. One of my friend, he is working in pharma co. His salary detail is below:-
I think he should get 9700/- in hand. But he get 9400/-
Is it right deduction or not ?
When he asked his RSM then he told that its PF deduction. But PF deduction from both side employee & employer. equal deduction
plz suggest
From India, Jaipur
5I want to ask query regarding PF deduction. One of my friend, he is working in pharma co. His salary detail is below:-
Basic 2500
HRA 1450
Education Allowance 400
Special Allowance 3050
Conveyance 800
CCA 250
Medical Allowance 1250
HRA 1450
Education Allowance 400
Special Allowance 3050
Conveyance 800
CCA 250
Medical Allowance 1250
Monthly Total (A) 9700
PF 300
Monthly Total (B) 10000
Gross Total (A+B) 120000
Daily Allowance 155Gross Total (A+B) 120000
I think he should get 9700/- in hand. But he get 9400/-
Is it right deduction or not ?
When he asked his RSM then he told that its PF deduction. But PF deduction from both side employee & employer. equal deduction
plz suggest
From India, Jaipur
It is totaly wrong and elighal a company can not deducat both contribution form employees salary
From India, New Delhi
From India, New Delhi
Dear Rani,
If the salary is mentioned as CTC, the employer PF amount only will be given in the offer letter. Employee PF amount will not be shown and it will be deducted from the salary.
so it is logical only. CTC means cost to the company which is given by the company employee deductions to be not given. And there will PT also.
regards
swarna
From India, Hyderabad
If the salary is mentioned as CTC, the employer PF amount only will be given in the offer letter. Employee PF amount will not be shown and it will be deducted from the salary.
so it is logical only. CTC means cost to the company which is given by the company employee deductions to be not given. And there will PT also.
regards
swarna
From India, Hyderabad
Dear Rani,
as Ms. Swarna advised, this is logical only. When we calculate CTC, co contribution would be considered. In some case if the company has superannuation benefits, it would be considered also. Moreover PF is a savings for your friend. whenever he resigns, He can withdraw the amount or he can transfer.
Regards
Raghav
From India, Bangalore
as Ms. Swarna advised, this is logical only. When we calculate CTC, co contribution would be considered. In some case if the company has superannuation benefits, it would be considered also. Moreover PF is a savings for your friend. whenever he resigns, He can withdraw the amount or he can transfer.
Regards
Raghav
From India, Bangalore
The CTC to company also includes Rs.300 contributed by company towards company's share of PF. Thus the total CTC to company becomes Rs.10,000.
After deducting Rs.300 each as Employees and Employers contribution to PF, the net payment of salary as 9400 is correctly paid.
TR Chhabria
From India, Gurgaon
After deducting Rs.300 each as Employees and Employers contribution to PF, the net payment of salary as 9400 is correctly paid.
TR Chhabria
From India, Gurgaon
Hi Rani,
I don't think any wrong on it. His monthly gross salary is Rs. 9700 and after deducting Rs.300 they have paid Rs.9400. In fact they should have deducted ESI employee contrbution of 1.75% of Gross salary. Pls. check.
The company has shown Rs.120000/- as CTC ( it includes Empr PF contribution also)
If you have any further queries pleast let me know.
From India, Madras
I don't think any wrong on it. His monthly gross salary is Rs. 9700 and after deducting Rs.300 they have paid Rs.9400. In fact they should have deducted ESI employee contrbution of 1.75% of Gross salary. Pls. check.
The company has shown Rs.120000/- as CTC ( it includes Empr PF contribution also)
If you have any further queries pleast let me know.
From India, Madras
You are saying that PF deduction is another thing & CTC is another thing. I understand about PF deduction. But pls let me explain about CTC.... Thanks Bnadna rani
From India, Jaipur
From India, Jaipur
Hi Rani,
I would like to give a further insight in this regard, as mentioned by Shiva I completely agree that with a Monthly Salary of Rs.10,000 there should be Mandatory Contribution of ESIC (i.e. 1.75 % from Employee side and 4.75 % from Employer's side) and PF (i.e. 12% from Employee side and 13.61% from Employer's Side) and this will add up in Gross Cost to Company. However, if we look at this Salary Structure provided by Rani Monthly Gross is Rs.10,000 [i.e. Rs.9700 (In Hand) + Rs.300 (Employee Contribution of PF] and subsequently Annual Amount is Rs.1,20,000. So it is very evident that they have not included any other contribution Amount here in this Annual Amount.
Hence, as prevalent to above Salary Structure, the person should get Rs.9700 as in hand Salary and Other deductions are apart from this Salary. Though Annual Gross CTC here would be Rs. 1,43,400. The break up of the Salary is given below
Basic Rs.2500
HRA Rs.1450
Education Allowance Rs. 400
Special Allowance Rs.3050
Conveyance Rs.800
CCA Rs.250
Medical Allowance Rs.1250
Deductions :
PF (Employee) - Rs. 720
ESIC (Employee) - Rs.170
TOTAL (A) Monthly Salary - Rs.10590
Total In Hand Salary [A -(PF +ESIC)] - Rs.9700
Employer's Contribution
PF (Employer) - Rs.720
ESIC (Employer) - Rs.640
TOTAL GROSS ANNUAL CTC - Rs.143400
This is a Standard salary Structure format. It might differ from Company to Company. I have tried my best to put correct Information. But any suggestions or corrections are most welcomed.
Thanks,
From India, Gurgaon
I would like to give a further insight in this regard, as mentioned by Shiva I completely agree that with a Monthly Salary of Rs.10,000 there should be Mandatory Contribution of ESIC (i.e. 1.75 % from Employee side and 4.75 % from Employer's side) and PF (i.e. 12% from Employee side and 13.61% from Employer's Side) and this will add up in Gross Cost to Company. However, if we look at this Salary Structure provided by Rani Monthly Gross is Rs.10,000 [i.e. Rs.9700 (In Hand) + Rs.300 (Employee Contribution of PF] and subsequently Annual Amount is Rs.1,20,000. So it is very evident that they have not included any other contribution Amount here in this Annual Amount.
Hence, as prevalent to above Salary Structure, the person should get Rs.9700 as in hand Salary and Other deductions are apart from this Salary. Though Annual Gross CTC here would be Rs. 1,43,400. The break up of the Salary is given below
Basic Rs.2500
HRA Rs.1450
Education Allowance Rs. 400
Special Allowance Rs.3050
Conveyance Rs.800
CCA Rs.250
Medical Allowance Rs.1250
Deductions :
PF (Employee) - Rs. 720
ESIC (Employee) - Rs.170
TOTAL (A) Monthly Salary - Rs.10590
Total In Hand Salary [A -(PF +ESIC)] - Rs.9700
Employer's Contribution
PF (Employer) - Rs.720
ESIC (Employer) - Rs.640
TOTAL GROSS ANNUAL CTC - Rs.143400
This is a Standard salary Structure format. It might differ from Company to Company. I have tried my best to put correct Information. But any suggestions or corrections are most welcomed.
Thanks,
From India, Gurgaon
Dear Rani,
There is no any wrong.His basic salary is Rs.2500/-So, the deducted amount as PF is correct.The pf amount is deducting on the total of Basic+DA
12% from employee side (2500*12/100=300)
12% from company side (2500*12/100=300)
Monthly Rs.600 will reach in to his PF account.
From India, Sholapur
There is no any wrong.His basic salary is Rs.2500/-So, the deducted amount as PF is correct.The pf amount is deducting on the total of Basic+DA
12% from employee side (2500*12/100=300)
12% from company side (2500*12/100=300)
Monthly Rs.600 will reach in to his PF account.
From India, Sholapur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc