Hi,
My current employer is a pvt. ltd. company with 90+ employees.
In the CTC break up, the company is adding the employer PF Contribution amount.
Example:
Basic 1,60,000
HRA 80,000
Conveyanc 9,600
Medical 15,000
Special Allowance 1,16,200
Employer Provident Fund 19,200
Total CTC 4,00,000
Is this break up correct.
Please help me to understand.
Thanks
From India, Chennai
2My current employer is a pvt. ltd. company with 90+ employees.
In the CTC break up, the company is adding the employer PF Contribution amount.
Example:
Basic 1,60,000
HRA 80,000
Conveyanc 9,600
Medical 15,000
Special Allowance 1,16,200
Employer Provident Fund 19,200
Total CTC 4,00,000
Is this break up correct.
Please help me to understand.
Thanks
From India, Chennai
yes this is correct because CTC mean cost to company in which include all tips of benefit.
From India, Gurgaon
From India, Gurgaon
Yes! this is correct. CTC means COST TO COMPANY.
But dear friends, kindly enlighten our readers whether only that part of the CTC like the employers contribution of PF should get reflected in the CTC details provided to the employee? To tell you the fact, it is one of the many HR strategy to show Cost Cutting/effectiveness in their personal KRA's. Otherwise, why should the other details of employers cost on the employee which should feature in the CTC not shown or provided to the employee. Friends do not be beguiled. Employers will continue to show (and legally correctly also- whether morrally or ethically too is a question mark) such scattered CTC. So in future do not ask for your CTC because it is not actually your, it is the employers CTC. Rather ask for your THP- Take home pay and you will stay benifitted.
From India, Kolkata
But dear friends, kindly enlighten our readers whether only that part of the CTC like the employers contribution of PF should get reflected in the CTC details provided to the employee? To tell you the fact, it is one of the many HR strategy to show Cost Cutting/effectiveness in their personal KRA's. Otherwise, why should the other details of employers cost on the employee which should feature in the CTC not shown or provided to the employee. Friends do not be beguiled. Employers will continue to show (and legally correctly also- whether morrally or ethically too is a question mark) such scattered CTC. So in future do not ask for your CTC because it is not actually your, it is the employers CTC. Rather ask for your THP- Take home pay and you will stay benifitted.
From India, Kolkata
Dear Friend,
CTC concept is being followed by all companies now a days. It exhibits the total cost to employee. So far as PF contribution is concern , employer's contribution towards employee is a cost to the company. Hence It is shown while calculating the CTC (cost to the company). Similarly if an employee is coming within the net of ESI Act,the employer's ESI contribution @ 4.75% will be reflected in the CTC. Likewise Gratuity to be payable will be taken into the consideration of CTC apart from many other heads.
Don't mix up with take home and CTC.together.
Thanks,
Sibabrata Majumdar
Management Consultant Legal & HR
From India, Calcutta
CTC concept is being followed by all companies now a days. It exhibits the total cost to employee. So far as PF contribution is concern , employer's contribution towards employee is a cost to the company. Hence It is shown while calculating the CTC (cost to the company). Similarly if an employee is coming within the net of ESI Act,the employer's ESI contribution @ 4.75% will be reflected in the CTC. Likewise Gratuity to be payable will be taken into the consideration of CTC apart from many other heads.
Don't mix up with take home and CTC.together.
Thanks,
Sibabrata Majumdar
Management Consultant Legal & HR
From India, Calcutta
My advice is do not get carried away by the CTC .Consider only the salary you get barring employer’s expenses to PF,'ESI , Gratuity,conveyance bonus,and other perks. Varghese Mathew 09961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Employer Provident Fund 19,200 >>>>>>>>>>>>> Is this Empoyee's + Employer's??
For eg, To make it very simple,per month 780 is the PF contribution from employee's side and 780 is the PF contribution from employers side.
So... 19200 >>> Is something like (780+780)*12 months???? or 780 (only employer's PF contribution) * 12 months?
Just need a clarity please!!!
From India, Bangalore
For eg, To make it very simple,per month 780 is the PF contribution from employee's side and 780 is the PF contribution from employers side.
So... 19200 >>> Is something like (780+780)*12 months???? or 780 (only employer's PF contribution) * 12 months?
Just need a clarity please!!!
From India, Bangalore
Yes it is correct. CTC is nothing but Cost to company. Whatever termed, any financial element
which the Employer gives to Employee will fall under CTC. There are companies where
gratuity amount- which may become applicable after five years of continuous service,
shall also be portioned on monthly basis -wil also be taken into account for the purpose of arriving
CTC.
Thanks
R K Nair
From India, Aizawl
which the Employer gives to Employee will fall under CTC. There are companies where
gratuity amount- which may become applicable after five years of continuous service,
shall also be portioned on monthly basis -wil also be taken into account for the purpose of arriving
CTC.
Thanks
R K Nair
From India, Aizawl
Correct. The Employer contribution for provident is the cost to the company, Hence it can be included in the CTC.
From India, Hyderabad
From India, Hyderabad
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Employer-PF-res trict to wages of Rs 6500.pdf