Salary Break Up & ESI ,PF Calculation- Info Needed - CiteHR
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
dear, Esi always deduct on total in hand salary including OT. PF always deduct on basic+DA Neeraj Uflex ltd noida 9718485060
Dear Lakshika,
I'll confuse little more, U invited more trouble, see the attachment. Don't blame me.
Rgds.
Kumar
Bg.
How to Calculate ESI:
For PF: Wages means Basic + DA+ Food subsidy+leave encashment(if paid).
On PF wages, employee will subscribe 12% and employer also contributed 12%.
The employer's contribution split into PF 3.67% and Pension Fund 8.33%.
For the purpose of PF wages ceiling is or even if salary/wages is more than Rs.6500/- it will be restricted upto Rs.6,500/-.
For ESI: Salary or Wages (both one and the same) means basic+DA+allowances+overtime.
But Conveyance allw.should not be considered.
For ESI revised limit Rs.15,000/-maximum once exceeded they will not be eligible.
The employee will be recoverd @ 1.75% of gross salary/wage and employer contribute @ 4.75% on employee's gross.
Any minimum wages, no minimum limit, also attract to ESI deduction.

Dear Lakshika,
I'm sorry I think I didn't attach the text portion which will explain little more about ESI. However I sent it to yr.mail. If U have any more doubt don't hesitate. All the best.
Rgds,
Kumar
Bg.

ESI is the benefit, which is applicable to an employee, who has the CTC upto 1.8 Lacs annual (15 K per month) This benefit need to deposit in ESIC department.
Employee Contribution: 1.75% Gross
Employer Contribution: 4.75% of Gross

Dear Lakshika,
PF is calculated on Basic + DA.
ESI is calculated on Basic+ DA+ HRA+Conveyance+ Performance allowance+ General allowance+bonus +fixed Traveling allowance+ fixed Incentives= Gross
Note: For ESI Calculation Washing Allowance+ Hill allowance will not be taken for calculation.
If you have any doubts means let us know.

Comeon yaar, what next ? What is salary?

OK.
Basic pay = A remuneration offered to an employee depending on nature/qualification/exp./responsibilities etc attached to a job. DA= Dearness Allw. Meaning an allowance to meet increase in prices of your day to day needs, an allw. to partially help U to buy things which have become dearer to you. In Govt. & Indl.sector this will vary depending on the movement of whole sale/consumer price indices, periodically announced by the Govt.
HRA= House Rent Allw, meaning an allw. meant to meet an employees housing exp.
Normally these allw. are expressed in terms of % on basic pay, saying DA @ 50%, HRA @ 20% on basic etc.
CCA = City compensatory allw. this is provided mostly by govt. sector @ 10 or 20% on basic pay.This not necessarily fixed as such. An employer can fix total remuneration as package all put together without splitting into basic pay, DA, HRA etc.
These terms are generally in vogue in govt.sector & corporate/big co. but not so much in small firms in private sector where they offer CTC (means cost to co.)which normally include meant to compensate other benefits like PF,Bonus, incentives, LTA, medical, conveyance, equivalent of food coupons etc. However,this is not uniform in all employers.
Right ?
TKS
Kumar
Bg.

Dear Sir, We are a civil contractor co. with the turnover of 130cr. we do provide bonus apart from CTC & providing CCA . shall we provide??
company is new and only 4 people are working if 1 person salary is 30000 want to know salary breakup and pf is not deducted, what all allowances should we add.
Dear Abhiyog,
Salary breakup would be
Basic - 12000 (40%)
HRA - 6000 (50% of basic)
CCA - 3600 (35% of basic)
Conveyance - 3000 (25%of basic)
Medical - 1800 (15% of basic)
Special Allowances- 3600
The % & heads for bifurcation can be changed

Hi,
I am paying 9500/- per month to my drivers and 5500/- per month to helper of truck. The drivers and helper are on contracts. The contractor is registered with ESI but not in PF. Please let me know how can I avoid PF contribution and I am ready to pay ESI. Please advise.


This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™