New PF Contribution rules Impact on CTC and Net Salary

After 1st Apr, 2019.
Many Employee had received lesser Take Home Salary. When you asked with your HR they replied New PF Rules. Which is somewhere true.

Some facts of New PF Rules.
1. Employees whose previous PF deduction was less than 1800 only those employees will be impacted.
2. Your Gross salary or Gross Earning can't be reduced. That you can compare from your Salary slip of March, 19 & April, 19.
3. Due to new rules your CTC will increase.

Reason why this information shared now.
Because many employers has not increased the CTC whereas they have reduced your Gross salary to match the rules.



Your Gross salary can't be reduced in financial year.
Due to lack of knowledge many employees are getting less salary approx ₹200 to ₹500.
Hope this post may help you to get justified salary. 

Comments

Post a Comment

Popular posts from this blog

Salary Not Received or Full and Final Settlement Not Done from Company

Image
Salary not received to Employee from Company after S/he resigned or Laid off or Terminated or Retired or you get separated from Organization for any reason. There are the following questions arise. What are the components of Salary or Legal dues you are eligible for? What to do?  Whom to connect with? How will you get it? How much compensation company is liable for? If Company says you will get your salary in 45 days or 60 days or whatever, is it justified? What are all conditions you are not eligible for the dues? 1. W hat are the components of Salary or Legal dues you are eligible for? Following are the components you are eligible for- Unpaid Salary - Monthly Unpaid Salary you worked for. Expenses or Allowance or Reimbursement -  Any expenses or allowance or reimbursement incurred during your employment. Such as Laptop Allowance, Travel Reimbursement, Mobile Allowance, Internet Allowance, etc. The amount will be actual or calculated on a Pro-Rata basis . Bonus -If your company is
Read more

Impact of PF Contribution's Relief to Employers and Employees

In May'2020. Government has announced to reduce PF contribution's from 12% to 10% for both the Employees and Employers. It will be applicable only for 3 months. Employer contribution will be paid by Government. Whereas Employee contribution will be paid by Employee themselves.  Now, how it will increase your inhand salary.  Eg. 1st case- If your old PF Contribution was 1800(12% of 15000). Now it will be 1500(10% of 15000). So in hand salary will increase by 300.  [Note-If in the Appointment Letter or Offer Letter mention about Gross Salary. And there is nothing mentioned about Employer Contribution or the Salary break up is not in the form of CTC.] 2nd Case-If in the Appointment Letter or Offer Letter mention about CTC. And there is mentioned about Employer Contribution also. Then taking the same above example your in hand salary will increase by 600. To calculate the same as per government announcement. Goto PF Deduction Column of Salary Slip.  《{(Old PF amount / 12)*100}*10%》
Read more

Government Support for Employees Regarding Salary Not been Paid for March'20 & April'20

Image
During this COVID-19 many Employees are not been paid salary for the month of March & April,2020. Government has provided the following mail id & phone number. Employees can directly connect with them and resolve their issue regarding salary if not paid or there is irrelevant deduction. For March'20 every employee should be paid 31 Days. Whether there was lock down from 23rd March,2020. For Reference click on this link- Lock Down Complaint Centre Details [Note-If your city is not mentioned kindly connect with capital of your state or nearby city.] Kindly give your feedback/suggestions/query in Comment Section below.   
Read more