Hi, guys i am very much confused regarding PF calculation, as i know 12% is deducted from basic from employee. But i have received one salary breakup there 12% is deducted from basic salary as well in perticular calculation also i have attached photo for ref. Kindly clear my doubt.
As per my knowledge salary breakup should be :
16085 CTC
- 12000 Basic pay
- 1685 Special All.
-458 Gratuity
−500 Medical
*−1440 PF*
−200 PT
13,485 take home...
But they have done:
16085 CTC
-12000 Basic pay
- 1685 Special All.
-458 Gratuity
−500 Medical
*−1440 PF*
−200 PT
Deduction
Gross 13685
*- 1440 PF*
- 200PT
12,045 take home...
Why did they deduct PF twice, i thought one is employee side other is employer side, but usually it employer side will not be deducted from salary breakup. And it will never show in breakup.I will appreciate if you can reply to this message.
From India, Bengaluru
As per my knowledge salary breakup should be :
16085 CTC
- 12000 Basic pay
- 1685 Special All.
-458 Gratuity
−500 Medical
*−1440 PF*
−200 PT
13,485 take home...
But they have done:
16085 CTC
-12000 Basic pay
- 1685 Special All.
-458 Gratuity
−500 Medical
*−1440 PF*
−200 PT
Deduction
Gross 13685
*- 1440 PF*
- 200PT
12,045 take home...
Why did they deduct PF twice, i thought one is employee side other is employer side, but usually it employer side will not be deducted from salary breakup. And it will never show in breakup.I will appreciate if you can reply to this message.
From India, Bengaluru
Dear Member,
The confusion is due to misunderstanding of “Gross Wages” & “CTC” concepts.
The take home salary is difference of “Gross Wages” and “Various Deductions (like PF-ESI-PT etc.)”.
But in CTC other components also added in the Gross Wages which the employer pays for the employee (like Employer PF-ESI Contributions, Annual Bonus, Medical, Gratuity etc.). The employee don’t get those amounts in cash, since the employer pay for the employee hence included in the CTC.
Now come to your above calculation. In your case the Gross Wages is 13685 (12000+1685) from which Rs. 1640 (PF-1440+ PT-200) deducted and you are getting Rs. 12045/-. That is fine.
Your CTC is Gross Wages-13685 + Other Benefits 2398 (458+500+1440) = 16083/-.
The other Salary Slip is just showing Gross Salary, deduction and Take Home salary. Hence PF deducted only one time.
Hope the matter is clear now, fellow members can throw more light on the matter.
From India, Delhi
225The confusion is due to misunderstanding of “Gross Wages” & “CTC” concepts.
The take home salary is difference of “Gross Wages” and “Various Deductions (like PF-ESI-PT etc.)”.
But in CTC other components also added in the Gross Wages which the employer pays for the employee (like Employer PF-ESI Contributions, Annual Bonus, Medical, Gratuity etc.). The employee don’t get those amounts in cash, since the employer pay for the employee hence included in the CTC.
Now come to your above calculation. In your case the Gross Wages is 13685 (12000+1685) from which Rs. 1640 (PF-1440+ PT-200) deducted and you are getting Rs. 12045/-. That is fine.
Your CTC is Gross Wages-13685 + Other Benefits 2398 (458+500+1440) = 16083/-.
The other Salary Slip is just showing Gross Salary, deduction and Take Home salary. Hence PF deducted only one time.
Hope the matter is clear now, fellow members can throw more light on the matter.
From India, Delhi
First Pay slip will not be accepted by any statutory authority. Second one is perfectly ok. CTC has no legal stand. It is a tool for management to control/understand the cost per employee.
Legal pay slip has nothing to do with CTC. It should be only earning side of monthly gross and deduction side - PF, ESI, PTAX etc.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
Legal pay slip has nothing to do with CTC. It should be only earning side of monthly gross and deduction side - PF, ESI, PTAX etc.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls