can EPF paid by the employee be shown in the CTC? if yes then is ter any rule, provision, section , act etc which lays this down?
From India, Lucknow
From India, Lucknow
Hi
CTC is cost to the Company and there is no hard and fast rule or act governing the computation of CTC. Suppose 6 lakhs is the ctc which is advertised by cmpany X it may take in to account LFA, projected Medical advance etc. in computing CTC. Suppose if y company advertises 6 Lakh as CTC it may are may not take in to account the above said components. Hence it alters from company to Company.
Accordingly, an employer can take in to account the contribution paid towards EPF as acomponent of CTC.
regards
ravi
From United States
74CTC is cost to the Company and there is no hard and fast rule or act governing the computation of CTC. Suppose 6 lakhs is the ctc which is advertised by cmpany X it may take in to account LFA, projected Medical advance etc. in computing CTC. Suppose if y company advertises 6 Lakh as CTC it may are may not take in to account the above said components. Hence it alters from company to Company.
Accordingly, an employer can take in to account the contribution paid towards EPF as acomponent of CTC.
regards
ravi
From United States
Ravi has rightly said that showing CTC varies from company to company.
I think when the salary option chart is shown or given to the employee concerned then in the deductions column this can be shown. The total cost to the company factor, from gross salary to deductions then net salary should be told the employee concerned. In our company we do not show the employees part, but our last coulmn mentions about the take home salary, wherein we tell clearly the employee concerned what all salary componenets will be deducted from his salary per month.
But it should be shown on the CTC very clearly under deductions column, so that the prospective candidate concerned has clear idea about this per month net take home before leaving the interview process.
Rekha
From India, Delhi
I think when the salary option chart is shown or given to the employee concerned then in the deductions column this can be shown. The total cost to the company factor, from gross salary to deductions then net salary should be told the employee concerned. In our company we do not show the employees part, but our last coulmn mentions about the take home salary, wherein we tell clearly the employee concerned what all salary componenets will be deducted from his salary per month.
But it should be shown on the CTC very clearly under deductions column, so that the prospective candidate concerned has clear idea about this per month net take home before leaving the interview process.
Rekha
From India, Delhi
Though it is a new practice showing the employer's contribution towards EPF etc as part of CTC, the system is wrong. All contributions to be made by employer are statutory in nature and is implied that an employee working in an organisation which is covered by EPF Act, will be eligible for contributory provident fund. Therefore, there is no need to add colour in the pay offer by showing all these costs to company. It is not basically correct to show the total CTC, the gross including the employer's contribution to PF and then deducting the employer's share from it to arrive at the net salary.
By virtue of scheme 31 of the Employees Provident Schemes, an employer should not deduct his own share from the salary. Here salary shall be the CTC and amount paid to employee is after deducting 24%, ie, 12+12 . This is a wrong practice, I suggest.
Regards,
Madhu.T.K
From India, Kannur
By virtue of scheme 31 of the Employees Provident Schemes, an employer should not deduct his own share from the salary. Here salary shall be the CTC and amount paid to employee is after deducting 24%, ie, 12+12 . This is a wrong practice, I suggest.
Regards,
Madhu.T.K
From India, Kannur
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