How PF Amount Is Deducted From Salary?

For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.

How PF is calculated on salary?

For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.

How much PF is deducted from monthly salary?

For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.

Is PF deducted from gross salary?

Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.

Is PF deducted every month from salary?

According to the EPF scheme rules, the employee contributes 12 per cent of basic wages plus dearness allowance from his salary every month towards his EPF account, and the employer matches the contribution of 12 per cent. So, in total, 24 per cent of the employee’s pay goes towards his/her EPF account.

What is CTC salary?

Cost to Company or CTC as it is commonly called, is the cost a company incurs when hiring an employee. 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.

What is basic salary pay?

Basic salary, also called base salary, is the amount of money a salaried employee regularly earns before any additions or deductions are applied to their earnings . ... These adjustments may include such things as added bonuses or deductions for the employee’s company health insurance premium.

How is total salary calculated?

Find your total gross earnings, before deductions, on your pay stub. Multiply this amount by the number of paychecks you receive each year to calculate your total annual salary. Suppose you are paid biweekly, and your total gross salary is $1,900. Calculate your annual salary with the equation $1,900 x 26 = $49,400.

How much tax is deducted from gross salary?

The federal individual income tax has seven tax rates ranging from 10 percent to 37 percent (table 1). The rates apply to taxable income—adjusted gross income minus either the standard deduction or allowable itemized deductions. Income up to the standard deduction (or itemized deductions) is thus taxed at a zero rate.

What is PF in salary slip?

Through a provident fund (PF), you contribute a part of your salary each month towards the pension fund. The amount accumulates over a period of time and you get it as a lump sum upon retirement or at the end of the employment. Every setup with more than 20 employees or more has to offer PF to its employees.

Which is better CTC or gross salary?

The employees’ CTC is the gross amount , while the amount of salary one gets to take home is the net salary. In simpler words, gross salary is the monthly or yearly salary before any deductions are made from it.

Is CTC a hand salary?

What is CTC breakup?

The Cost-to-Company or CTC is the total amount that a company spends on you, directly or indirectly . It includes basic pay, allowances, provident fund, and others. In simpler terms, this is the amount that the company offers you as a salary package when employing you for the job.

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