Hello,
Currently I am working in IT Company as Hr. But I am very new to payroll process.
So I need help how to make payroll or monthly salary .
I have one more confusion regarding Employer PF and ESI is included in monthly salary or not.
Regards
Ruchika
From India, New Delhi
Currently I am working in IT Company as Hr. But I am very new to payroll process.
So I need help how to make payroll or monthly salary .
I have one more confusion regarding Employer PF and ESI is included in monthly salary or not.
Regards
Ruchika
From India, New Delhi
Mentioning the employer contribution for pf and esi is not necessary to show in the payslip as it should not be deducted from the employees' salary. Many concerns are getting confused with the cost to company CTC with salary as the management of many concerns are discussing this CTC with the employee during final interview as the same ONLY is tobe discussed or mentioned to the finance department as they can plan for the Employees cost (cost of labour) which includes the contribution of PF,ESI,Labour welfare fund,provision of gratuity, bonus.
From India, Madras
63From India, Madras
Hello,
Thanks for reply and sharing information.
I need to ask one more thing when we making monthly payroll , so the contribution of Employer toward PF and ESI will be counted as in monthly gross salary or not. what would be the net in hand salary of employee.
Please help me again.
Regards
Ruchika
From India, New Delhi
Thanks for reply and sharing information.
I need to ask one more thing when we making monthly payroll , so the contribution of Employer toward PF and ESI will be counted as in monthly gross salary or not. what would be the net in hand salary of employee.
Please help me again.
Regards
Ruchika
From India, New Delhi
Ruchika,
There is a ton of stuff about all aspects of Payroll already posted here on CiteHR by other members.
This is a question that is regularly asked.
In addition to payroll, you can also find the answers to almost all your HR questions on any subject posted here.
Please use the reSearch Box at the top of every page here on CiteHR.
From Australia, Melbourne
There is a ton of stuff about all aspects of Payroll already posted here on CiteHR by other members.
This is a question that is regularly asked.
In addition to payroll, you can also find the answers to almost all your HR questions on any subject posted here.
Please use the reSearch Box at the top of every page here on CiteHR.
From Australia, Melbourne
How can we calculate pf contribution from the wages / salary of employees, if their basic or basic+VDA+FDA is 6500/-.
Pl guide is there 780/- (6500*12%) or 6500/26*(workday+cl+el+offd+paid holiday)*12%.
Roshan V.
From India, Takalghat
Pl guide is there 780/- (6500*12%) or 6500/26*(workday+cl+el+offd+paid holiday)*12%.
Roshan V.
From India, Takalghat
Dear Ruchika,
Employer's Share of PF (along with EDLI & Admin Charges) and ESIC has to be submitted to competent authority along with the monthly deduction amount on respective heads (PF & ESIC).
This implies,you need to deduct PF (Employee's Share) @ 12% on basic and you need to contribute 12% as the Employer's shares @ 12% on basic plus 1.61% of basic towards EDLI & Admin Charges and need to submit the total amount to EPFO.
Same shall be the treatment with ESIC for which the rate shall be 1.75% & 4.75% on gross as employee's share and employer's share respectively and submit the same ESIC authority.
For both the remittance yo need to generate Challans on line (separately for PF & ESIC) and submit the PF contribution latest by 15th and ESIC contribution by 21st of the onth for the contribution of previous wage month,ie the PF contribution for the month of June to be submitted latest by 15th July and ESIC by 21st July.
The payroll of a company depends as per its policy that varies from one to other in terms of the break ups. So consult and refer to your exsisitng company policy.
From India, Chandigarh
Employer's Share of PF (along with EDLI & Admin Charges) and ESIC has to be submitted to competent authority along with the monthly deduction amount on respective heads (PF & ESIC).
This implies,you need to deduct PF (Employee's Share) @ 12% on basic and you need to contribute 12% as the Employer's shares @ 12% on basic plus 1.61% of basic towards EDLI & Admin Charges and need to submit the total amount to EPFO.
Same shall be the treatment with ESIC for which the rate shall be 1.75% & 4.75% on gross as employee's share and employer's share respectively and submit the same ESIC authority.
For both the remittance yo need to generate Challans on line (separately for PF & ESIC) and submit the PF contribution latest by 15th and ESIC contribution by 21st of the onth for the contribution of previous wage month,ie the PF contribution for the month of June to be submitted latest by 15th July and ESIC by 21st July.
The payroll of a company depends as per its policy that varies from one to other in terms of the break ups. So consult and refer to your exsisitng company policy.
From India, Chandigarh
Dear Arnab ,
Thanks for reply and sharing information.
I need to ask one more thing when we making monthly payroll , so the contribution of Employer toward PF and ESI will be counted as in monthly gross salary or not. what would be the net in hand salary of employee.
Please help me again.
Regards
Ruchika
From India, New Delhi
Thanks for reply and sharing information.
I need to ask one more thing when we making monthly payroll , so the contribution of Employer toward PF and ESI will be counted as in monthly gross salary or not. what would be the net in hand salary of employee.
Please help me again.
Regards
Ruchika
From India, New Delhi
Employers contribution of PF & ESIC is not a part of monthly gross salary but its a CTC component.
Net salary = Gross salary (total earning for the month) - Deductions for the month (employee's share of PF+employees share of ESIC+Professional Tax+Deduction for damage & loss,if any+recovery of loan and advance,if any).
From India, Chandigarh
Net salary = Gross salary (total earning for the month) - Deductions for the month (employee's share of PF+employees share of ESIC+Professional Tax+Deduction for damage & loss,if any+recovery of loan and advance,if any).
From India, Chandigarh
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