Can any body help me to how we calculate ESI if CTC is 8000/-
i now the the % of Employeer & Employee contribution towards ESI It's
4.75% & 1.75% respectively, but not able to claculate ESI.
Can, any body show me the calculation method????????????
Waithing for ur quick response.............

18th April 2007 From India, Mumbai

Sam Verma
Self Employee
Hr Executive
Hr- Executive
A Chandra Prabha
Payroll Executive - India,sigapore &
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+13 Others

Dear Somu,
Pls let me know whether the CTC is Rs.8,000/- or the gross sal is tat. If gross is Rs. 8000/-, here the cal follows
8000 * 4.75% = Rs. 380/-
8000 * 1.75% = Rs. 140/-
Hope u got it.
18th April 2007 From India, Madras
The total ESI is 6.5 % ie 4.75 % from employer and 1.75 % from employee.
so for 6.5 % of 8000 will be around 480 to 500 . Now you can breakup this amount as per the % for employer and employee.
Hope this clarifys.
18th April 2007 From India, Bangalore
Dear Friend,
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
18th April 2007 From India, Bangalore
Hi....Soma, Please see my earlier topic "ESI Return Made Easy" in this group. Regards, :) PBS KUMAR
18th April 2007 From India, Kakinada
GTM 10
Hi Soma
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.

18th April 2007 From India, Bhopal

Attached Files
File Type: xls ctc_117.xls (17.0 KB, 16033 views)
dear Shweta,
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.
Ashutosh verma
19th April 2007 From India, Chandigarh
Hi Plz clarify me abt the difference between gross salary n CTC. I know dat CTC is dat total cost which a company bears for its employee. and Gross = CTC - Benefits given by Company m i correct
21st April 2007 From India, Kanpur
Hi Soma,
Please find………
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
Warm Regards,
21st April 2007 From India, Bangalore
Hi, First calculate the gross salary and then take 4.75% and 1.75% of it for the purpose of ESI deductions. Regards Abhay
21st April 2007 From United Arab Emirates, Sharjah

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