nancy_anu1 Started The Discussion:
Hi ALL, I am working at a place (Delhi) where we are in the process of starting PF deductions and ESI benefit. The salary paid by employer is only Rs5500 p/m.
As an HR I want to divide salary into various components so that PF deduction is as less as possible as employees will get even lesser salary after PF deduction. Also PF and ESI(employee contribution) deduction is part of minimum wage or is above that.
Please help me making a new salary slip for my employees, I am confused with minimum wage, then Pf and ESI deduction out of Rs5500 as salaries are very low here.
Dear Nancy_Anu1, As far my knowledge is concerned we can’t divide the mini wages in into different component (Like HRA, Conv. etc). The PF & ESI is applicable on Rs. 5500 P.M. Regards Rashmi
As per the regulations, you can't bring down the Basic Pay less than 40% of the Gross Pay for calculation of E.P.F. Rest 60% of the Gross Pay to be divide under the Heads of H.R.A, Transport, Medical, and any other allowances.
For example, the breakup of the CTC Pay Rs.5,500/- would be:
Special Allowance 106
C.T.C. Total 5500
E.P.F Contribution 264
Professional Tax 60
Deductions Total 416
Take Home PAY 5184
In Delhi Minimum wages has been increased in Feb 10 upto 6500/- as basic.
So employer has to cut PF on 6500/-
if you will give me interested take home pay for your employees then i will give eyou break up for ctc.
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