Harsh Kumar Mehta
Consultant In Labour Laws/hr
Tiwari Sudhir
Dy Manager - Hr
Rajiv Pratap
Senior Executive Operations Industrial Relation,
+2 Others

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Dear Friends
After long time i am coming,
u all r very good & helpful person
Last few days i am gone under depression because my senior give the calculation of intrest & damages of ESI & PF.
Now i am able to calculate the damages & intrest of ESI & PF.
i think u should also know about calculation of damages & intrest of ESI & PF.
if u r also learn this process pls follow these step.
i give one example for this
a Contractor had appointed for limited period of time. the duration of that Contractor was 1 jan 2008 to 31st july 2008. the contractor had not paid there pf & esi liability during this period. so conserned court send notice to him pay pf & esi liability with interest & damages.t
Damages & interest r paid in total wages.for example the total wages is Rs. 22000, no. of person 3
so here i attach one EXCEL SHEET regarding this calculation.
if u dont understand dont shy thaat is my contact number """"""09039233390""""""


From India, Bhopal

Attached Files
File Type: xls Calculation of PF ESI Damages & Intrest.xls (29.5 KB, 11743 views)

Hi, GM this calculation is based on DAYS IN the Interest & damsges we only think about days BR? Sudhir
From India, Bhopal
:confused: hello varsha this side,
actually u gave the appropriate info about the pf n damages but plz can u explain me more about why we r taking 2 times the ESI,initially by 1.75%& then by 4.75%.
my email id is

From India, Delhi
Hi Sudhir,
It is indeed a great help, infact always look for information which given more indepth knowledge on any kind of calculations and analysis.
Indeed a great help.
Thanks n Regards
Can you alos provide info on calculating interest on PF?

From United Kingdom
can you help me?
i am having one query. for PF calculation what is rule for employee & employer contribution . how we do is- 12% on basic or 780 which ever is less. is it correct. our co. falls under factory act. & is loacted in Maharastra , pune. so our consultant is advicing to calculate in this fashion.
please help......
jyoti swamy.

From India, Pune
Hi Jyoti,

Regarding PF Contribution -Employer should pay 12% of Basic salary, in which 8.33% will goes to Pension Scheme balance 3.67 will goes to PF & 1.61 is admin charges i.e total employers contri is 13.61%.

While calculating the Pension Scheme employer should pay 8.33% of basic (limit is upto Rs.6500/ ie Rs.541/-) not more than that rest will goes to PF.

say for eg. if the employees is getting Basic salary of Rs.8000/- Rs.541/-(8.33%) will goes to pension scheme and Rs.419/- will goes to PF, however employer has to contribute 12% of basic, whatever be the amount.

Regarding Employee Contirbution of 12% from basic is unavoidable as per the PF act.


1) If the employee's basic increases beyond Rs.6500/- then the employer have to contribute the minimum amount of Rs.780/-. It is mandatory.

2) On hiring if the basic exceeds 6500/- the PF amount of 780/- has to be deducted if he is aleady a member of PF. Else not required.

3) If the employee joins in the consultant mode then PF does not have to be deducted.

Thanks & Regards...


From India, Nasik
Hi Sudhir and guys,
I work for a pvt company, I was awfully shocked that pyt of ESI was not paid. from 2007 to 2009. for eg: if the person drew a sal of CTC - 15000 how do you calculate damages and interest for ESI from the above period.
Can this excel sheet calculate single person damges and interests.

From India, Kochi
The PD charges for PF have been revised,
For Months------5%
For 2-4 months-----10%
For 4-6 Months---------155
For More than ^ months----25%

From India, Calcutta
Dear Sudhir ji,
you mentioned ESI Wages Rs. 22,000/_ and calculated 1.75% & 4.75% on Rs. 22,000/_ but i think more than Rs. 15,000/_ there is no need to deposit either of employee contribution of 1.75% and employer's contribution @4.75%.
Please advise,

From India, New Delhi
Dear Tiwari Sudhir, Thanks for the usefull informatin,, Lets we have small discussion over it that why we are paying both like Damages and Interest...??? Regards STM
From India, Hyderabad

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