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.
Posted 27th August 2013 From India, Hyderabad
Per mnoth payslip Gorss Salary is "Wages " under ESI Act.......
Posted 27th August 2013 From India, Pune
Thanks for the Reply. So you mean to say ESI Need to be Calculated on Earnings?
Posted 27th August 2013 From India, Hyderabad
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
Posted 27th August 2013 From India, Ahmadabad
Dear Saji, Thanks for the Reply. As you said ESI Calculation need to be done on that Gross salary amount. Am I Right?
Posted 27th August 2013 From India, Hyderabad
Hello Giridhar ESI is to be computed on Gross Earnings.. @1.75% Employee and 4.75 % Employer.. Thanks Praveen
Posted 27th August 2013 From India, Bangalore
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
Posted 28th August 2013 From India, Thiruvananthapuram
Gross Salary for ESI deductions can be restricted to 15000/- per month being the sealing under the Act
Posted 28th August 2013 From India, Panipat


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