How to calculate Salary,PF & ESIC in Pvt companies? - company policy
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Binita chawda Started The Discussion:

Respected Seniors, I just want to know in private organisation how they calculate the PF & ESIC ? can anybody help me out for this... Thanks & Regards, Binita

Shrikant Talawar -  Member Since: Feb 2011
hi,,,,,

For PF it is calculated on Basic+Da,,,For E.g- if Basic+da is 6500
then PF Calculated as 12% on that= 6500*12/100= 780 can deducted from employees.

and for monthly challan preparation if total number employees Basic + DA wages is 6500 then-

Employee contribute employer contribute

A/c 1- 12% i.e 6500*12/100= 780 3.67% i.e 6500*3.67/100=238.55
A/c 2- - 1.1% i.e 6500*1.1/100= 71.5
A/10- - 8.33% i.e 6500*8.33/100=541.45
A/C- 21 - 0.5% i.e 6500*0.5/100=32.5
A/C- 22 - 0.01% i.e 6500*0.01/100=0.65

Shrikant Talwar

pingali.srivani@rediffmail.com -  Member Since: May 2011
Hi friends,

Can anybody help me how to calculate salary, pf, & esi, and how to maintain attenance forms and form no and its procedures related to PF,ESI, EPFo.which form is useful and what should be atached like form1,2,etc. and contributions I want full details with calculations on depositlinked insurance and pf calculations detailed Please help me.
-srivani

pingali.srivani@rediffmail.com -  Member Since: May 2011

Rashmika Ukirde -  Member Since: Jun 2008
Dear All,

Plz let me in private sector how the basic and DA percentage gets decide?

In private sector does have any fix min or max percentage for basic and DA?

Awaiting for positive response.

Thanks,

Rashmi

nitesh_barman -  Member Since: May 2008
Well if you just want to know about calculation method about PF & ESIC... then it's done by this manner...
ESIC
1.ESIC is deducted those employees whom gross salary is not more than 15,000.00/month...
2.Both Employee & Employer has to contribute in it.
3.Employee Contribution % is 1.75 % and Employer Contribution % is 4.75% of gross salary.
4.and it should be calculate on next higher rupee method.
Eg. if my gross salary is 15,000.00 and for January month my working days are 28 days, then my gross would be for that month will be 13548.00.
so, as 1.75 %, 13548*1.75%=237.09 but as i told you earlier it will be calculate upon next higher rupee so it will be 238.00 and just that Employer Contribution 4.75 %, 13548*4.75%=643.53 but for esic it will be 644.00
and just total them and make challan of it and deposit it.

PF
and as far PF is calculated on Basic + Dearness Allowance...
then PF Calculated as 12% of that amount by both employee and employer... but employee contribution goes as EPF (12%) but employer contribution is divide in two parts EPF (3.67%) & 8.33 % (FPF).
as one's gross is 13,000 then basic would be 6500.00 (50 % of Gross and it varies)
Employee Contribution - 6500*12 % = 780.00
Employer Contribution - 6500*3.67 % = 239.00
Employee Contribution - 6500*8.33 % = 541.00 but this contribution should not be more than 541.00 Rs.
it's the calculation for individual person.

and if you need how to make challan then write me...

nitesh_barman -  Member Since: May 2008
No, there is no any fix % but in Metro cities it’s 50 % of gross and Non-Meto cities it’s 40 % of gross... but again it’s on company policy..

Binita chawda -  Member Since: Jun 2010
Respected Sir/Madam, Thank You so much for giving me this PF & ESIC Calculations. will get back to you if i will come across any Query. Regards, Binita

somdattaneogi -  Member Since: Nov 2010
Dear All,

I am in a huge confusion regarding pay structure. Please let me know as to what is :
1. CTC
2. GROSS
and 3. NET

As per my knowledge :
NET + (EMPLOYEE'S CONTRIBUTION OF PF + EMPLOYEE'S CONTRIBUTION OF ESIC) = GROSS and GROSS + (EMPLOYER'S CONTRIBUTION OF PF + EMPLOYER'S CONTRIBUTION OF ESIC + PTAX) = CTC

IF THIS IS IT THEN THE SALARY BREAK UP OF EMPLOYEE "A" WOULD BE :

Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF (EMPLOYEE) 1152
PF (EMPLOYEE) 1152
PTAX 130
Gross 19200
CTC 21634
Take Home 19070

BUT THE COMPANY IS OFFERING :
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF 1152
Gross 19200
CTC 20352
Take Home 18048

Kindly tell me as to which one is correct??? This is a bit urgent, so I would be glad if you could kindly help me.

Somdatta Neogi
9903068598
Kolkata (W.B.)

nitesh_barman -  Member Since: May 2008
your company offering you is correct...
and in simple way
CTC is Cost t o company as Your Gross Amount + Other Cost which company paid for you...
Gross is that amount which company agree to give you for your work & Net is amount which balance after deductions..

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