Gross & CTC terms in salary

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Student (Querist)

22 July 2010 hello,

1)Is this equation wrt to Salary correct?
CTC - Employer's PF contribution - Employer's ESIC contribution
= GROSS SALARY - CTC - Employees PF & ESIC - Prof. Tax - TDS = NET SALARY (paid monthy)

2)Is employer's contribution twds PF & ESIC included in CTC?

3)Entire EPF ie 25.61% & ESIC of 6.5% deducted is deposited into treasury or a part is retained by pvt. ltd co. twds admin charge?

thanks
kirti.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)

22 July 2010 1.CTC- cost for apoitment - other costs = gross salary - esi pf and other = net salary.

2. yes

3. no

Student

Student (Querist)

22 July 2010 hi
can you be clear wrt ans to pt. 3? what % of PF & ESIC deducted by the company is retained and how much is deposited into treasury

thnx

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

23 July 2010 What ever deducted whether PF,ESI or admin charges need to pay to Govt A/c. employer no rights to keep, ( Out of 25.61% admin charges included and same shall be deposited)

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CA. Anoop Gadia

CA. Anoop Gadia (Expert)

24 July 2010 full value employer paid to govt. they cant retain this amount

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