Can employer PF be deducted from CTC?

Under the Employees Provident Fund Act, the employer’s share cannot be deducted from the employee. The employer cannot recover the share of funds from the salary of its employees either. It is wrong if an employee’s PF is deducted or not paid by the employer.

Why is employer PF deducted from my salary?

The reason often cited is that the employee did not complete a tenure of five years with the said employer. The employees need not let go of the share withheld from them. Under the Employees Provident Fund Act, the employer’s share cannot be deducted from the employee.

Does CTC include EPF?

CTC involves a number of other elements and is cumulative of House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance among other allowances which are added to the basic salary. To put it in simpler terms, CTC is a company’s spending on hiring and sustaining the services of an employee.

At what salary PF is not deducted?

Employees Provident Fund (EPF) wage ceiling: Bharatiya Mazdoor Sangh (BMS) has urged the government not to deduct PF of those persons whose monthly salary is Rs 15,000.

Does employer contribute to PF?

The employee and the employer contribute to the EPF scheme on monthly basis in equal proportions of 12\% of the basic salary and dearness allowance. Out of the employer’s contribution, 8.33\% is directed towards the Employee Pension Scheme.

How much PF is deducted from CTC?

The contribution to the PF account is 12 per cent of the basic pay.

Can company deduct salary?

Answer: Yes. Salary deduction or pay-cut may be allowed under certain circumstances especially when it is the only option to prevent termination and or retrenchment of employees. The Employer may deduct the employees’ salaries to cut their losses.

Is employer contribution to PF taxable?

Excess contribution above 12\% of the salary by the employer was taxable. Accordingly, employer’s contribution to Provident Fund, National Pension Scheme (NPS) and Superannuation Fund in excess of Rs. 7.5 lakh will be taxable as perquisites in the hands of the employee.

Can a company not deduct PF?

As per the Employees Provident Fund Act, the employer’s share cannot be deducted from the member. Also, it cannot be recovered from the salary of employees. If the employee PF was deducted and not paid, it is incorrect. You can reach out to your officer-in-charge for getting the same rectified.

Can I include PF contribution in CTC?

But YES to include in CTC where it is shown as it is part of employer contribution & paid to PF department. 1] Gross Salary is the total salary before any deductions as shown in your payslip. The employees PF contribution is deducted from Gross salary. The employer PF is not deducted.

Is employer PF included in gross salary or CTC?

The employees PF contribution is deducted from Gross salary. The employer PF is not deducted. Now if you refer the above gross salary calculation, it shows that Employer PF is not included in gross salary but in monthly CTC it is included.

Can an employer deduct his share of PF amount from employee salary?

Employer can not deduct his share of the contribution to the employee’s provident fund. However he can reflect his contribution in the over all CTC offered to the employee at the time of his recruitment. Originally Answered: Can employer deduct his share of pf amount from employee salary?

How much of my salary can I contribute to my PF?

Employees can contribute more than 12\% of their salary voluntarily, however the employer is not bound to match the extra contribution of the employee. For PF contribution, the salary comprises of fewer components: