dear All,

please let me know if company havent mention while interview abt the PF and ESI deduction not even it was mention in Appointment letter and the salary heads are showing BAsic, HRA, and conveyance Allownces with total CTC and now if company has decided to deduct the PF and ESI of employees so in that case is only employee is lible to pay the deduction.
Thanx & Regards
9th July 2008 From India, Delhi

India, Madras
Payroll, Training & Development, Employee
Working As A Sr. Hr Executive
India, Pune
Hr Executive
India, Delhi
Senior Hr Executive
India, Mumbai
+5 Others

i want to know about ESIC and PF rules. whether both are deducted on basic salary or basic+da. please clear me.
22nd November 2008 From India, Jaipur
Dear Gunjan,
ESI and PF are statutory requirement whether the company mentioned the cost in the appointment letter or not. It is the company's responsibiltiy to pay the employee & employer share of the contribution to the ESI & PF organisations.
Anbarasan J.

23rd November 2008 From India, Coimbatore
Dear friend, ESI Should be deducted from the gross salary and the PF deducted from the Basic+DA. Regards, Anbarasan J
23rd November 2008 From India, Coimbatore
pls. anybody help me , if we pay overtime for the employee on that we have to deduct the ESIC on over time amount. anita
29th August 2009
Hi PF deduction is applicable only on Basic + DA and it is not applicable on HRA & Conveyance.
15th May 2010 From India, Madras
Employee is liable to pay his contribution only which will be deducted from his gross salary and the employer need to pay his contribution towards the employee, which will be part of the ctc
Net Sal = Gross Sal - Employee contributions (ESI, PF, PT, IT etc)
CTC = Gross Sal + Employer Contributions (ESI, PF, Grad etc)

15th May 2010 From India, Madras
plz tell me for which allowancew esi is nt deducted ,in cash it is deducted whether we hav to submit the supporting bills during inspection. regards, Amith Shetty
7th July 2010 From India, Bangalore
Dear all,
PF and ESIC both are calculated on Basic salary+DA. The rate of Pf contribution is 12% of Basic+DA from either side. And For esic the contribution is 1.75% from employee and 4.75% from employer. Other than this 1.61% is added by employer as EDLI charges.
The ceiling rate for PF is 6500/-month and for ESIC 15000/-. Hope this information is sufficient for all of you.
Sudhir R. Wagh
14th September 2010 From India, Mumbai
Can you please explain the following:
As per the LABOUR DEPARTMENT PUNJAB minimum wages (2013) in punjab Rs 5695/- is the basic salary component of the CTC or it is the CTC ?
ESI and PF is deducting on CTC or Basic Salary ?
What is minimum criteria of CTC/Basic salary to deduct ESI and PF ?
Parmod Kumar
27th June 2013 From India, Amritsar


Discuss problems openly with your peers around the world without getting into company specifics. Access to years of such problem discussion data and business material is at your finger tips.
All resources created by our members are available to everyone at no cost.

Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network