What Is PF And PT In Salary?

What is Medprem in salary slip?

A salary slip is a document issued by an employer to an employee.

It contains a detailed description of the employee’s salary components like HRA, LTA, Bonus paid etc and deductions for a specified time period, usually a month..

Is PF mandatory for salary above 15000?

It is mandatory for an organisation employing more than 20 people to register with EPFO. While contributing towards EPF is mandatory for those earning basic wages of up to Rs 15,000. Those earning basic wages more than 15000 per month, EPF contribution is not mandatory.

What is PT salary?

August 7, 2017 Blogs. When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. PT or Professional Tax, as it is called, is a tax paid to the state government.

What is Prof split period?

It is paid by dividing the annual professional tax due into 12 equal instalments, which are to be paid every month. February, as a month, is an exception where the tax is higher than the other months. There might be situations where sources of income falling under different sectors are also liable for a separate tax.

What is the basic salary limit for PF?

Rs 15,000 per monthAs per the rules, in EPF, employee whose ‘pay’ is more than Rs 15,000 a month at the time of joining, is not eligible and is called non-eligible employee. Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF.

What is new PF rule?

Under the new Code, employees are also likely to get higher gratuity payments and employer’s contribution towards their Provident Fund (PF) corpus. As per draft rules, wages for the purpose of calculation of gratuity and contribution to PF will have to be at least 50% of employee’s total salary.

On which amount PF is deducted?

From the employer’s EPF contribution, 8.33 per cent goes towards the Employee Pension Scheme (EPS) and the remaining to the PF account of the employer. This EPS component is calculated on the basic pay of Rs 15,000, or actual basic pay, whichever is lesser.

What is CTC salary?

Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer (organisation) spends on an employee during one year. … Employees may not directly receive the CTC amount.

Can I take loan from PF?

An individual having a PF account can withdraw funds from the account as loan. Partial withdrawal is possible in case the loan is towards buying/repairing a house. The employee should be in service for 5 years to be eligible to get loan against PF.

Is PF included in fixed salary?

Broadly, while CTC includes all the payments and benefits, fixed and variable, that you are entitled to, your take-home salary is what you get after all the mandatory deductions, such as Employees’ Provident Fund (EPF) contribution and various taxes.

Why PF is cut from salary?

The government has cut the Employees’ Provident Fund (EPF) contribution by both employer and employee for the next three months i.e. May, June and July, 2020. Employees need to know that contribution to their EPF accounts can be claimed as tax break in case their salary falls in taxable bracket.

How much PF is cut from salary?

Out of the 12% contribution, 8.33% goes towards the Employee Pension Scheme Account, and the remaining 3.67% goes to the employee EPF account. It is compulsory for all employees who draw a basic salary of less than Rs 15,000 per month to become members of the EPF.

Can basic salary be decreased?

You cannot reduce the basic salary of any employee. Please understand that all the statutory deductions like PF, gratuity, superannuation are based on it. The quantum of deduction cannot come down from a given level.

How is PF salary calculated?

Calculation of PF PF contribution has to be made both by the employees and the employer. The contributions get accumulated in the provident fund in the name of the employee. The contribution of the employer is 12% of the basic wage plus dearness allowance or DA. The employee makes an equal contribution.

Is PF calculated on gross salary?

PF calculation: Since the employee’s Basic is above Rs 6,500, the stipulated ceiling for mandatory PF Gross, his PF contribution can be calculated as 12% of Basic i.e. Rs 1,200 in this case. … Salary: An employee receives Basic pay of Rs 3,000 per month and Rs 3,000 each under Special Allowance and Other Allowance.