PF QUERY URGENT

 in my opinion employers contribution is not included in ctc

Employer's contribution to PF is contribution from his own pocket and nothing to do with the employees salary.

Employer's contribution can be claimed as expense and must be debited to Profit & Loss Account.

And it is compulsory to contribute towards EDLI charges.

Employer Cn to PF forms part of CTC(cost to company) as it is a expense borne by the company.

Employer Cn is treated as expense in books of account

Employees deposit link insurance is a compulsion to contribute  and is a expense thts why when we calculate CTC we take it as 13.61% i.e. 12% employer cn + 10% PF admin charge on employer cn+1% edli on edli gross and 2% inspection charge on edli.

hope this clarifies. let me know if u need more in detail.

yea Agree with Mr. Arijit.. Emplyr contribution will forms part of CTC coz it will be a cost for a company.

regards,

ratan

Originally posted by : ARIJIT DASH
	Employer Cn to PF forms part of CTC(cost to company) as it is a expense borne by the company. Employer Cn is treated as expense in books of account Employees deposit link insurance is a compulsion to contribute  and is a expense thts why when we calculate CTC we take it as 13.61% i.e. 12% employer cn + 10% PF admin charge on employer cn+1% edli on edli gross and 2% inspection charge on edli. hope this clarifies. let me know if u need more in detail.

agreed with the above reply
 

Thanks to all and can you throw light on computaion of 1.Employer contribution if Basic pay exceeds 6500 and can we follow any three methods or any specific should be followed? Do reply sir.

sonia,

To your query regarding employer's contribution in respect of basic pay exceeds Rs.6500, it goes like this.

The employer  is only oblige to make his part of contribution for an basic amount <=6500. if any thing exceeds this threshold limit,  then the burden of contributing is solely rests on the employee, as he can volantarily contribute to the scheme.  I hope this is clarified.

What is the penalty imposed on the employer,  if PF collected from employees, but the same is not paid to Governament?