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It is important that these concerns are addressed before there is unnecessary industrial action. They are also suspicious of changes to their pay structures, thinking that their employer is trying to rob them. The advantages to the employer is that they now have a basis on which to work from when allocating employees annual increases and bonuses.Įmployees on the other hand often fail to see the fact that benefits paid by employers are also salary costs. Using this approach, employers will always know what an employee is costing them. The employee’s total cost to company is therefore:
Ctc means in salary slip plus#
Add the employee’s cash salary (basic pay plus allowances) to the company’s contributions to the employee’s benefit funds.Įmployee A receives a monthly basic salary of R 15 000, a travel allowance of R 5 000 and the company contributes 7% of the employee’s basic salary to a provident fund and R 1 000 per month to a medical aid. A cost to company approach allows employers to better manage overall employment cost increases.Īnother common question asked by employers is “how do I determine what an employee’s total cost of employment is?” The answer is very simple. These changes however are seldom accompanied by a decrease in the increases expected by employees annually.
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120/- and then make balance payment of Rs. 120/-) from you, what is being done is to deduct the Rs.
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1000 to you and then getting the contribution of 12% (Rs. Instead of first paying the entire salary of Rs. Thereafter you have to contribute to your PF 12% i.e.
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Ctc means in salary slip full#
So, either you can get the full monthly salary (CTC assured by the company) and then make payment of 12% towards your contribution to the PF either by cash or by cheque. It is statutory requirement that 12% of salary to be contributed to PF by the employee concerned and correspondingly 12% to be contributed by the Company. It is the statutory requirement that every employee should join PF. You may then ask, if that be so, they why the Company is deducting 12% from my salary (which is CTC) towards PF. Even now the Company is paying you the agreed CTC.