ESI Calculation - Gross Salary
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ESI Calculation - Gross Salary

Giridhar.R Started The Discussion:

Dear Sir/Madam,
I have gone through several postings and understood that ESI should be calculated on Gross salary.
If i am not wrong..Gross salary=CTC-Employer PF Contribution-Employer ESI contribution.
If we want to calculate Gross salary we need to know ESI Percentage and for ESI calculation we need to know Gross salary. So how can we arrive at conclusion in calculation.
kindly help me out on this.

Prashant B Ingawale - Member Since: Jul 2007
Per mnoth payslip Gorss Salary is "Wages " under ESI Act.......

Giridhar.R - Member Since: Aug 2010
Thanks for the Reply. So you mean to say ESI Need to be Calculated on Earnings?

fc.vadodara@nidrahotels.com - Member Since: Jun 2011
Quote:
Originally Posted by Giridhar.R View Post
Dear Sir/Madam,
I have gone through several postings and understood that ESI should be calculated on Gross salary.
If i am not wrong..Gross salary=CTC-Employer PF Contribution-Employer ESI contribution.
If we want to calculate Gross salary we need to know ESI Percentage and for ESI calculation we need to know Gross salary. So how can we arrive at conclusion in calculation.
kindly help me out on this.
The ESI Contribution for Employer is 4.75% and that of Employee it is 1.75% of Gross Salary. You have to make reverse calculation i.e. CTC-Employer PF Contribution = sum arrived to be divided with 1.0475 whatever you get is the gross salary.

Hope that you got your query resolved

Giridhar.R - Member Since: Aug 2010
Dear Saji, Thanks for the Reply. As you said ESI Calculation need to be done on that Gross salary amount. Am I Right?

Praveen.H - Member Since: Oct 2009
Hello Giridhar ESI is to be computed on Gross Earnings.. @1.75% Employee and 4.75 % Employer.. Thanks Praveen

varghesemathew - Member Since: Jun 2011
It is gross salary.But not CTC which consist of employers share of PF,ESI,Gratuity,and other cost incurred by employer for transport,food etc. Varghese Mathew

Gupta VK - Member Since: Jul 2013
Gross Salary for ESI deductions can be restricted to 15000/- per month being the sealing under the Act

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