PF Contribution under section 6 not payable on CTC

The Employers in today’s world give the breakup of the outgoings under different heads as CTC in the appointment letter issued to new employee. CTC is the total cost, generally on a yearly basis, which an employer incurs on an employee during his employment/services or his holding office in the company/establishment and is normally/generally much above the wage ceiling on which PF is Payable under the act and the scheme.

Read the below circular for clarification