Hi all
In the offer letter that I received from a company, there are 2 components in the fixed compensation structure: PF and Gratuity.I have the following queries:
1) If PF for the month is for example Rs 5000/- then, does this amount get deducted from my monthly salary?
2) Can Gratuity be added as a salary component as I have not come across it in previous companies?
3) If Gratuity for each month is for example Rs 5000/- then, does this amount get deducted from my monthly salary?
Looking forward for your reply.
Regards
skka
From India, Hyderabad
In the offer letter that I received from a company, there are 2 components in the fixed compensation structure: PF and Gratuity.I have the following queries:
1) If PF for the month is for example Rs 5000/- then, does this amount get deducted from my monthly salary?
2) Can Gratuity be added as a salary component as I have not come across it in previous companies?
3) If Gratuity for each month is for example Rs 5000/- then, does this amount get deducted from my monthly salary?
Looking forward for your reply.
Regards
skka
From India, Hyderabad
In respect of P.F, only the employee's(your contribution) will be deducted from salary but not employer's cotribution.. Gratuity cannot be deducted from your salary nor paid to you every month along with salary. However it is observed that employers are showing gratuity in CTC as cost to comapny. But it is payable on your leaving the servcie after completion of five years of servcie.
B.Saikumar
Mumbai
From India, Mumbai
1899B.Saikumar
Mumbai
From India, Mumbai
Also just to add to Sai sir's view,
though employer cannot deduct their contribution to the PF from your gross salary, they can show it in your CTC as a record.
The reflections would be as follows-
Basic
Da
Hra
Conveyance
Medical Allowance
Food Allowance (if any)
Other Allowances
=====================
GROSS
(x) 12
=====================
ANNUAL GROSS
Gratuity
Employer's contributions (PF, ESIC, Insurance - if any)
Bonus
Other costs incured
=====================
CTC
=====================
And note that
GROSS
(-) Professional Tax (as per your slab and city)
(-) Your contributions (to PF, ESIC and others)
(-) TDS
=============================
IN HAND
I hope this would clear your doubt.
From India, Mumbai
though employer cannot deduct their contribution to the PF from your gross salary, they can show it in your CTC as a record.
The reflections would be as follows-
Basic
Da
Hra
Conveyance
Medical Allowance
Food Allowance (if any)
Other Allowances
=====================
GROSS
(x) 12
=====================
ANNUAL GROSS
Gratuity
Employer's contributions (PF, ESIC, Insurance - if any)
Bonus
Other costs incured
=====================
CTC
=====================
And note that
GROSS
(-) Professional Tax (as per your slab and city)
(-) Your contributions (to PF, ESIC and others)
(-) TDS
=============================
IN HAND
I hope this would clear your doubt.
From India, Mumbai
Common Yaar this is too much ........ you should know first what is EPF( Employee Profident Fund) and what is Gratuity ???
EPF is a benefit created by the Central Govt. for all employees irrespective of their catagory.
Your company will deduct from your salary ( as per the PF rules) 12% of your basic salary and equally the company also contribute and remit in the PF local office or bank. ( Now a days this is on ONLINE facility. On your resignation irrespective of your services whether it is 3 months or 3 years or 30 years you can draw this amount after the concerned forms to be filled by you and also should be authorized by your employer after your resignation / retirement.
GRATUITY is a benefit the company should extend to their employees at the time of resignation. But the concerned employee should have been completed 5 years in his services in the same company... And MAINLY THERE IS NO DEDUCTION IN THE SALARY ANY EMPLOYEE TOWARDS GRATUITY. The company should give you this Gratuity on the day of your relinquishing the company.
- regards - venkat - bangalore -
From India, Bangalore
EPF is a benefit created by the Central Govt. for all employees irrespective of their catagory.
Your company will deduct from your salary ( as per the PF rules) 12% of your basic salary and equally the company also contribute and remit in the PF local office or bank. ( Now a days this is on ONLINE facility. On your resignation irrespective of your services whether it is 3 months or 3 years or 30 years you can draw this amount after the concerned forms to be filled by you and also should be authorized by your employer after your resignation / retirement.
GRATUITY is a benefit the company should extend to their employees at the time of resignation. But the concerned employee should have been completed 5 years in his services in the same company... And MAINLY THERE IS NO DEDUCTION IN THE SALARY ANY EMPLOYEE TOWARDS GRATUITY. The company should give you this Gratuity on the day of your relinquishing the company.
- regards - venkat - bangalore -
From India, Bangalore
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