Officer - Hr
A Chandra Prabha
Payroll Executive - India,sigapore &
Serving In Pers.& Er
Payroll Processing And Statutory Compliance
Employeed - Ibm India
Hr - Asst Manager
ESI is not calculate on the CTC .
ESI is calculated on employees GROSS salary its also includes Incentives & NFH (National Festival Holidays & other Allowanes
Both Employer ( 4.75%) & Employee (1.75%) Must contribute ESI Pay on Employee Gross Salary
It is really a tough exercise, even I faced the same problem in my company.
but there is a way to solve it. First you need to calculate the gross salary of the employee i.e. CTC minus PF and ESI. But here we want to calculate ESI itself so do one thing apply this formula.
And Here I am attaching a CTC for 8000/- it can help you
this time I am not able to give you detailed guidance but if you dont understand the calculation I will give the details.
well first i must clear it out to you, that E.S.I calculation is always calculated on Gross Salary, rather than C.T.C.
in order to know the gross salary, you will have to deduct esi, and pf (Employers share) from C.T.C or anyother such component which does not form the part of routine salary, like bonus, etc.
then after you can make the calcualtion for E.S.I .
Still if yu have any doubts do let me know.
C T C includes Employers contribution to PF and ESI
Gross Salary = C T C - Employers contribution to PF
Net Take Home Salary = Gross Salary Statutory Deductions (PF, ESI, PT,
Mediclaim, Food, Transportation etc etc)
EX: C T C = 8000/-
Gross Salary = 8000 12% on PF (Basic+ DA) ESI 4.75%
Net Take Home Salary =7254-12% PF-ESI 1.75%-PT