PF,PT,ESI CALCULATION - Professional Tax
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PF,PT,ESI CALCULATION - Professional Tax

msriya Started The Discussion:

HI, CAN U ALL PLZ HELP ME AS TO HOW TO CALCULATE PT,PT,ESI AND ALSO INCOMETAX CONCEPT. THANKS RIYA

Amitmhrm - Member Since: Feb 2007
Hi Riya,

ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-

Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees

Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.

Whereas, PF is also been paid from both the sides.. Both the employer as well as employee is required to pay the 12% of basic salary..
Out of this 12% of employer's contribution 8.33% goes to Pension fund whereas rest 3.67% goes to the PF Fund itself..

Regards,

Amit Seth.

siddareddythummaluru - Member Since: Jun 2008
Hello Can u pls explain me about the ESI,PF,HRA,Medical Reimbursement,Income Tax,DA etc.with detailes examples.I searched in google regarding this but i have not found information.But today only i got this website addess.I hope i will get the required information.Or you can contact me on 9885228756 also

pankajraghav - Member Since: Jul 2008
Hi My Name Is Pankaj I Do Not Know Esi , Pf ,hra, And Da Calcution Plz.you Can My Help My Contact No.09919596126

paramount - Member Since: Mar 2008
Hi,

PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- or less above that PF is not deducted.
1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]

EDLI - Employee deposit link insurance

EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.

Provident fund is calculated towards the employers is 13.61%
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%

ESIC calculation:
-------------------
In this ESIC, it includes the medical benefit both for the employee and employer.
It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.10000/- p.m
Employee side - 1.75% and Employer side - 4.75%.
So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-
Employer 8000*4.75% = 380/-
Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 10000/- gross per month will not be applicable under ESIC act.
2. 20 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 10000/- or less per month.
Apart from that there is a tax deduction., it includes the Income & professional tax.

CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly)
gross pay + employers pf+employers ESI + bonus = CTC
i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.

CTC
-----
CTC is cost to company and the components are
Basic
+HRA
+CONVEYANCE
+MOBILE REIMBURSHMENT
+MEDICAL reimburshment
+All allowances
+LTA
+employer cotri of PF
+Employer Cotri towards ESI
+Total variable incentives
+Perks & benefits
+ insurance Premium (in case of Group insurance)

Gratuity calculation

t is been deposited @ 4.81% of Basic per month..
After completing 5 years of service one may claim Gratuity at the time of separation from the organisation and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-


Hope this will be useful for you. If you ve any other clarification pls do visit

EPF : www.epfindia.com
ESIC : www.esic.nic.in

Regards
Jenny

debasreetalukder2008 - Member Since: Jul 2008
Can someone please post a PPT on PF & ESI? I need it for training purposes. It would be very helpful. By the way,this is my first query in this website,hope you guys will help me. Regards, Debasree

neethyml - Member Since: Jun 2009
hi friends i am M.S.W(H.R) fresher..... i am looking for h.r job in manufacturing industries located in chennai or nearby area like gummidipundi, sriperumbathur,perungudi,tambaram etc....... can anybody refer me? if you can please mail me at

neethyml - Member Since: Jun 2009
hi friends i am M.S.W(H.R) fresher..... i am looking for h.r job in manufacturing industries located in chennai or nearby area like gummidipundi, sriperumbathur,perungudi,tambaram etc....... can anybody refer me:?:

vish_2k8@indiatimes.com - Member Since: Mar 2009
Dear Members,
How to calculate ESI? HRA will be included in Total Earned salary for ESI calculation? yes/no. if no .so what can I do for I have already inlcuding HRA in total Earned salary for ESI calculation since company was established.
please guide me.

b.r.
V.R.yadav.

nilanjanaroy - Member Since: Jun 2009
Dear Jenny, Today i went through your topic, its simply gr8. it is really helpful to like us who are new in this HR JOb. Regards, Nilanjana



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