gunjan.srivas4 Started The Discussion:
dear All,

please let me know if company havent mention while interview abt the PF and ESI deduction not even it was mention in Appointment letter and the salary heads are showing BAsic, HRA, and conveyance Allownces with total CTC and now if company has decided to deduct the PF and ESI of employees so in that case is only employee is lible to pay the deduction.

Thanx & Regards
i want to know about ESIC and PF rules. whether both are deducted on basic salary or basic+da. please clear me.
Dear Gunjan,

ESI and PF are statutory requirement whether the company mentioned the cost in the appointment letter or not. It is the company's responsibiltiy to pay the employee & employer share of the contribution to the ESI & PF organisations.

Anbarasan J.

Dear friend, ESI Should be deducted from the gross salary and the PF deducted from the Basic+DA. Regards, Anbarasan J
pls. anybody help me , if we pay overtime for the employee on that we have to deduct the ESIC on over time amount. anita
Hi PF deduction is applicable only on Basic + DA and it is not applicable on HRA & Conveyance.

Employee is liable to pay his contribution only which will be deducted from his gross salary and the employer need to pay his contribution towards the employee, which will be part of the ctc

Net Sal = Gross Sal - Employee contributions (ESI, PF, PT, IT etc)
CTC = Gross Sal + Employer Contributions (ESI, PF, Grad etc)


Please find below the basic salary structure

1) Basic - 35% - 50% of Gross
2) HRA - 40% of Basic for Non metro & 50% of basic for Metro
3) Con - Max Rs. 800/ P M which is Max of Rs. 9600 P A
4) Medical Reim - Max Rs. 1250 / PM which can be max of Rs 15000 PA
5) Spl Allow - Balance of Gross will be provided as Spl Allow

1) PF
Emp Contribution - 12% on Basic
Emp'r Contribution - 13.61% on basic

2) ESI - Applicable to employees whose Gross Salary is less than or equal to Rs.15000
Emp Contribution - 1.75% on Gross
Emp'r Contribution - 4.75% on Gross

PT - It Varies State to state

Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT
CTC = Gross + PF (Emp'r Cont) - ESI (Emp'r Cont)

Regarding PF & ESI rules just log on to the below mentioned websites.

plz tell me for which allowancew esi is nt deducted ,in cash it is deducted whether we hav to submit the supporting bills during inspection. regards, Amith Shetty
Dear all,
PF and ESIC both are calculated on Basic salary+DA. The rate of Pf contribution is 12% of Basic+DA from either side. And For esic the contribution is 1.75% from employee and 4.75% from employer. Other than this 1.61% is added by employer as EDLI charges.

The ceiling rate for PF is 6500/-month and for ESIC 15000/-. Hope this information is sufficient for all of you.

Sudhir R. Wagh


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