somabiswas2005 Started The Discussion:

Can any body help me to how we calculate ESI if CTC is 8000/-
i now the the % of Employeer & Employee contribution towards ESI It's
4.75% & 1.75% respectively, but not able to claculate ESI.

Can, any body show me the calculation method????????????

Waithing for ur quick response.............

Posted 18th April 2007 From India, Mumbai
Dear Somu,

Pls let me know whether the CTC is Rs.8,000/- or the gross sal is tat. If gross is Rs. 8000/-, here the cal follows

8000 * 4.75% = Rs. 380/-
8000 * 1.75% = Rs. 140/-

Hope u got it.

Posted 18th April 2007 From India, Madras
The total ESI is 6.5 % ie 4.75 % from employer and 1.75 % from employee.

so for 6.5 % of 8000 will be around 480 to 500 . Now you can breakup this amount as per the % for employer and employee.

Hope this clarifys.
Posted 18th April 2007 From India, Bangalore
Dear Friend,

ESI is not calculate on the CTC .
ESI is calculated on employees GROSS salary its also includes Incentives & NFH (National Festival Holidays & other Allowanes

Both Employer ( 4.75%) & Employee (1.75%) Must contribute ESI Pay on Employee Gross Salary

Posted 18th April 2007 From India, Bangalore
Hi....Soma, Please see my earlier topic "ESI Return Made Easy" in this group. Regards, :) PBS KUMAR
Posted 18th April 2007 From India, Kakinada
Hi Soma
It is really a tough exercise, even I faced the same problem in my company.
but there is a way to solve it. First you need to calculate the gross salary of the employee i.e. CTC minus PF and ESI. But here we want to calculate ESI itself so do one thing apply this formula.

And Here I am attaching a CTC for 8000/- it can help you
this time I am not able to give you detailed guidance but if you dont understand the calculation I will give the details.


Posted 18th April 2007 From India, Bhopal
Attached Files
Shared By Cite.Community Member "GTM" For Public Download
File Type: xls ctc_117.xls (17.0 KB, 13987 views)
dear Shweta,
well first i must clear it out to you, that E.S.I calculation is always calculated on Gross Salary, rather than C.T.C.

in order to know the gross salary, you will have to deduct esi, and pf (Employers share) from C.T.C or anyother such component which does not form the part of routine salary, like bonus, etc.

then after you can make the calcualtion for E.S.I .

Still if yu have any doubts do let me know.


Ashutosh verma
Posted 19th April 2007 From India, Chandigarh
dear Shweta what is CTC? i did not understand that calcualtion can u explain details for me or forward my id ple.. this is my id : Nagendra Hyderabad
Posted 19th April 2007 From India, Hyderabad
Hi Plz clarify me abt the difference between gross salary n CTC. I know dat CTC is dat total cost which a company bears for its employee. and Gross = CTC - Benefits given by Company m i correct
Posted 21st April 2007 From India, Kanpur
Hi Soma,
Please find………
C T C includes Employers contribution to PF and ESI

Gross Salary = C T C - Employers contribution to PF

Net Take Home Salary = Gross Salary – Statutory Deductions (PF, ESI, PT,
Mediclaim, Food, Transportation etc etc)

EX: C T C = 8000/-
Gross Salary = 8000 – 12% on PF (Basic+ DA) – ESI 4.75%

Net Take Home Salary =7254-12% PF-ESI 1.75%-PT
Warm Regards,
Posted 21st April 2007 From India, Bangalore
Hi, First calculate the gross salary and then take 4.75% and 1.75% of it for the purpose of ESI deductions. Regards Abhay
Posted 21st April 2007 From United Arab Emirates, Sharjah
Dear Shweta,

Thanks a lot lot lottttttttttt !!!!!!!!!

You slove my proble. And, now with the help of your ESI formula I'm easily able to calculate ESI.

Keep Posting.....................

thanks once again,

soma :)
Posted 23rd April 2007 From India, Mumbai
Dear Friend,

Kindly click on the following link, it will give you some required information,

Pls let me know was this information useful,,

If not let me try out more & give information,,,,

In CiteHR you will get A to Z information on HR…..


M. Peer Mohamed Sardhar
093831 93832
Posted 4th September 2007 From India, Coimbatore
Dear sir,

Thanking you for your response. I have already check in the link, but I have not found the attchment in excel sheet regrding the EPF AND ESI RETURN FORMS. Kindly send the same if you have these type of files.

Basudeva Choudhury
New Delhi
Posted 4th September 2007
Dear All,

Need to know just 1 thing in the excel sheet attached by shweta for CTC Calculaton. Do we deduct Employers contribution of PF from our CTC only & Y ? Then y is it called employers contribution at all?


Posted 5th September 2007
Dear Soma,

Kindly see the ESI act in the website and keep it for your reference. In ESI Act ESI will be calculated on gross amount paid by employer to the employee. ( NOT ON CTC CALCULATED BY EMPLOYER)

Basudeva Choudhury
New Delhi
Mobile no. 9891430567
Posted 6th September 2007
Dear Soma,
ESI is contribution is payable on gross salary up to Rs. 10,000/- PM. For contribution only gross salary is considered not the CTC.
I your case Gross salary is 4941 so employee contribution will be (1.75*4941/100) =86.47 i.e. 87 & employer contribution will be (4.75*4941/100) = 234.70 i.e. 235.
Amit Kumar Tawar
Posted 7th September 2007 From India, Mundra
Lakshmi If The Employe Will Resigned Without Filluping The Epf & Esi Forms Then What We Do And How We Will Close Their Account
Posted 3rd June 2008 From India, Hyderabad
dear all, can anybody send me how to present finance MIS for a mining company. Thnaks a lot satya rath
Posted 7th July 2009 From India, Bhubaneswar
Dear sirs,

i am a fresh graduate and i have attended an interview and they have asked me about PF caluculation and ESI caluculation. But I acutally dont know the salary caluculations, deductions and their returns. please help me in this regrard. send me caluculation methods with an example.

Gururaju Acharya
Posted 19th August 2009 From India, Hyderabad
Can i know we have deduct only employee contribution or both employer, kindly give process
Posted 31st August 2009 From India, Hyderabad
Hi i am new to payroll.I have little problem in reimbursement configuration. any one please tell me how to calculate reimbursement,items in it..what are the claim procedure Arunraj Bangalore
Posted 13th October 2009 From India, Bangalore
Dear GTM, I have my own Firm , Namely SNP Info Tech, I am Paying Rs. 5000/- To my Employees, Total Strenth is 11 Employees. Am i suppose to pay ESI.??? Pls Reply me soon. Thanks & Regards, Alpa Patel
Posted 14th August 2010 From India, Ahmadabad
ESI is applicable only if your Gross salary is below 15,000. if it’s more ESI is not applicable. Regards, Derek Gomes
Posted 27th October 2010 From India, Mumbai
hi Dear all, I m just complete 3yrs. in organisation pls give me detials about my total PF amount after 3yrs. 780 Rs. deduct PM from my salry. thanks, regards Rahul
Posted 7th November 2010 From India, Ajmer

ESIC calculation formual

Gross salary - Attendance allowance if any * 4.75% Employer's contribution
Gross salary - Attendance allowance if any * 1.75% Employee contribution
Esic calculation depend on: whichever the component that going to employee through ever month salary is included in esic calculation
Basic pay, HRA, Personal Pay, (Statutory Bonus if you are paying monthly), Conveyance Allowance, Medical Allowance, Meal allowance, Travel Allowance, Vehicle Allowance, any other component which ever going through monthly salary

form more information please send mail to
XL file attached
Posted 10th December 2010 From India, Bangalore
Attached Files
Shared By Cite.Community Member "dilgeetha_2105" For Public Download
File Type: zip ESIC (10.0 KB, 699 views)
hello soma how can u calculate CTC without knowing his/her gross salary I think u will calculate CTC if u know Gross salary becoz in CTC other allowance, Bonus Leave are alsoo include
Posted 10th December 2010 From India, Delhi
Dear All, How can we avoid diffrence betwin ESIC mannual calculation & system genrated challn amount. Pls check if employee count is more than 50. Regards, Kaushal
Posted 23rd July 2012 From India, Mumbai
Hi Shweta, I am not able to underatnd the attachement with regard to the annual gross salary. The total of individual components do not add up to Ra 96,000/-. Could you please explain it in detail?
Posted 27th July 2012 From India, Madras
Hi Please let me know in what cases do we have ESI. As per my understanding any establishment, factory which has more than 20 employees and any employee whose in hand salary is less than 15000 we need to calculate ESI?
Posted 14th September 2012 From India, New Delhi


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