Quick Answer: Is PF Part Of Fixed Salary?

What does CTC mean?

Cost to companyCost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa.

It indicates the total amount of expenses an employer (organisation) spends on an employee during one year..

What is CV CTC?

Hi, what is CTC? Someone asked me, so it’s Cost to Company which means your current package in the organization you are currently employed and ECTC an Expected Cost to Company for your future firm. … Hence, one should not write expected CTC in the resume.

Is PF mandatory?

According to the EPF scheme rules, it is mandatory for an employee to join the EPF scheme if his pay is less than or equal to Rs 15,000 a month.

What is fixed pay in salary?

Fixed monthly salary = basic monthly salary + fixed monthly allowances. Basic monthly salary: This is payment that does not vary from month to month, regardless of employee or company performance, and regardless of whether the employee takes medical or personal leave. … Examples include fixed food and housing allowances.

Is PF part of CTC?

Most employers contribute 12% (called PF) of basic salary every month to employee’s Provident fund account, shown in CTC. An employee also contributes 12% (called VPF). … Employer PF is part of CTC not shown on Salary Slip.

Is employer contribution to PF is a part of gross salary?

The employer may count his PF contribution to you as your gross salary. But in the EPF, the employer’s contribution is exempt from tax. Only employee’s contribution is included in gross taxable salary and the same is shown as deductions u/s 80C.

Why PF is cut from salary?

Pay cuts have a direct impact on the take-home salaries of the people and thus impact their financial budget as well as spending capacities. … As per the Employees’ Provident Fund and Miscellaneous Provisions Act, employees have to contribute 12% of their basic wage plus dearness allowance towards PF.

What is new PF rule?

Those earning a basic salary of more than Rs 15,000 a month will now contribute 10 per cent instead of the mandatory 12 per cent contribution towards the PF for the next 3 months till August 2020. … “The move by the government to reduce the 12% PF contribution to 10% will help increase the take home pay of employees.

Is PF mandatory above 15000?

EPF eligibility criteria If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.

How is PF calculated in CTC?

EPFO rules call for deducting 12.5% of the employee’s basic pay as PF contribution and an equal amount has to be chipped in by the employer. … It is a part of CTC as the total expenditure incurred on the employee each month,” said a HR manager in a private civil construction firm.

Is PF included in fixed salary?

Broadly, while CTC includes all the payments and benefits, fixed and variable, that you are entitled to, your take-home salary is what you get after all the mandatory deductions, such as Employees’ Provident Fund (EPF) contribution and various taxes.

How is PF salary calculated?

In most cases, for those working in the private sector, it’s the basic salary on which the contribution is computed. For instance, if your basic monthly salary is Rs. 30,000, then contribution by you and your employer would be Rs. 3,600 each (12% of basic).