As per the ESI act it is calculated on Gross amount.
To arrive at Gross amount there are various pay elements considered like Basic, HRA, Convy & Spl pay [balancing figure after allocating the amount in other payelements] etc.
As PF, ESI & Gratuity is calculated after Gross salary, and as ESI is calculated on Gross i am getting a circular reference while i prepare the the salary fitment in spread sheet.
Can body guide me how to arrive at gross earnings as Spl pay is balancing figure?
Appreciate an early response.
Thanks, Nikita
3rd May 2009 From India

Gm (hr)
Nikita Gandhi
Team Lead (c&b + Pms)
Head Hr
+1 Other

hi niki, 1st of all esi is deducting from gross amount and in gross amount only (basic and da) comes other heads come rest depending on ur earning and deduction head.at the end what ever amount u will get that will be ur net payable amount. which include all earnings like hra , conv, special payand deduction head like security, etc.
hope u are clear now.
for any help keep in touch
Ratikanta Rath
3rd May 2009 From India, Delhi
dear ESI is deducted on your gross salary ehich includes basic,HRA,conveyance,special pay,special allowance etc. tks j s malik
4th May 2009 From India, Delhi
ESI is applicable on all heads which appears on your salary / wages slips and which are paid on monthly basis. This is applicable for employees who are drawing their gross monthly salary less than Rs 10000/- p.m.
8th May 2009
mr mallick if we are deducting our pf from basic not including hra, special allowence etc. then why esi is not deducting from only basic any changes in rule then guide me.......
10th May 2009 From India, Delhi
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