hello Please clarify.
Are they deducting contribution from your end, as well as their end - then its wrong.
Are they only deducting your contribution - then its fine
The Diwali bonus part - makes no sense. Bonus is something in addition, not a part of ctc.
From India, Madras
54Are they deducting contribution from your end, as well as their end - then its wrong.
Are they only deducting your contribution - then its fine
The Diwali bonus part - makes no sense. Bonus is something in addition, not a part of ctc.
From India, Madras
Mr.Sandeep,
The explanation given by you is correct. Many companies are allocating the employers contribution of PF, Gratuity & PLI, if applicable, in the CTC structure and the same is remitted to PF. We can not call it as deduction, but it is an apportioned component.
From India, Lucknow
The explanation given by you is correct. Many companies are allocating the employers contribution of PF, Gratuity & PLI, if applicable, in the CTC structure and the same is remitted to PF. We can not call it as deduction, but it is an apportioned component.
From India, Lucknow
dear devink,
i think there has been a miscommunication between you and company. Company is right on it side. Now a days it (CTC) is a new trend and most of the companies is adopting it. At the time of interview or joining you should have asked that what will be the components of CTC or what will be the in hand Salary.
Thx
Rajesh Sharma
From India, Delhi
i think there has been a miscommunication between you and company. Company is right on it side. Now a days it (CTC) is a new trend and most of the companies is adopting it. At the time of interview or joining you should have asked that what will be the components of CTC or what will be the in hand Salary.
Thx
Rajesh Sharma
From India, Delhi
If bonus is also a part of CTC, and if an employee’s salary “Gross is less than 10000” will you deduct ESI? If yes, statutory noncompliance is 200% sure.
Dr. Sandeep K
Zonal HR Manager (South)
From India, Bangalore
Dr. Sandeep K
Zonal HR Manager (South)
From India, Bangalore
Agree with PON 1965’s comment. The current trend is to include everything under CTC. Your cost to company. some company add Leave & mediclaim premium also in CTC.
From India, Ahmadabad
From India, Ahmadabad
yh, mr. gsrsumana is right. CTC means the total investment a company invest on its employees wheather its directly or indirectly. Most of the companies doing this practice these days.......
From India, Delhi
From India, Delhi
Hi All;
Thank you very much for all your inputs regarding the PF deduction as it is mentioned in my offer letter. However the deduction regareding teh bomus is also mentioned in the offer letter is it atatutory. Is it possible for me to ask the company to not to deduct the PF.
Thnxs & Rgrds
Dev
From United States, Fremont
Thank you very much for all your inputs regarding the PF deduction as it is mentioned in my offer letter. However the deduction regareding teh bomus is also mentioned in the offer letter is it atatutory. Is it possible for me to ask the company to not to deduct the PF.
Thnxs & Rgrds
Dev
From United States, Fremont
Dear .............
Your query about pf & bonus:-
At first u confirm When u have joined the establishment they offer u as ctc or net pay.
if they offer u net pay then it is to be illegal to price cut.
if they offer u as ctc it means not illegal. at first u conform what is ctc :- it means cost to company. for u what are the expenses bear by the company. all are included as ctc.
for query about pf :-
They will deduct 25.61% basic for pf contribution. How ?
Gross wage + pf+bonus+gratuity+leave with pay + etc= ctc. In that term they cover 13.61%. other 12 % will come in ur pay slip as a pf contribution.
For Bonus :- Every month they pay 8.33 % as minimum bonus. for that year last thay will pay full basic as minimum bonus.
Both pf & bonus are shown in ur ctc.
Idf any query after this then welcome.
Appa Rao
Officer - HR
Jsw Steel Ltd.
Your query about pf & bonus:-
At first u confirm When u have joined the establishment they offer u as ctc or net pay.
if they offer u net pay then it is to be illegal to price cut.
if they offer u as ctc it means not illegal. at first u conform what is ctc :- it means cost to company. for u what are the expenses bear by the company. all are included as ctc.
for query about pf :-
They will deduct 25.61% basic for pf contribution. How ?
Gross wage + pf+bonus+gratuity+leave with pay + etc= ctc. In that term they cover 13.61%. other 12 % will come in ur pay slip as a pf contribution.
For Bonus :- Every month they pay 8.33 % as minimum bonus. for that year last thay will pay full basic as minimum bonus.
Both pf & bonus are shown in ur ctc.
Idf any query after this then welcome.
Appa Rao
Officer - HR
Jsw Steel Ltd.
It is not quite proper to ask the employee to also pay up the Employer's share of PF Contributions.
Normally while calculating the CTC, Employer's Share is included in the CTC so is Bonus. After all both these heads of account are a cost to the Co.
But if some deductions are being made under the guise of Bonus and it also gets reflected in the Pay Slip, then it is illegal deductions.
But if Bonus has been included in the CTC and treated as Bonus and paid as Bonus during Diwali, it is okay. In this case the deductions towards Bonus cannot be made from the salary each month.
Best Wishes,
Vasant Nair
From India, Mumbai
Normally while calculating the CTC, Employer's Share is included in the CTC so is Bonus. After all both these heads of account are a cost to the Co.
But if some deductions are being made under the guise of Bonus and it also gets reflected in the Pay Slip, then it is illegal deductions.
But if Bonus has been included in the CTC and treated as Bonus and paid as Bonus during Diwali, it is okay. In this case the deductions towards Bonus cannot be made from the salary each month.
Best Wishes,
Vasant Nair
From India, Mumbai
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