Epf & Esi Matters
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I m wrking in a automobile co. based in delhi...
i wanna knw abt the breakup of salary and abt d calculation of ESI & PF...
in salary we hv to incld allwnc like- washing, travling, spl. HRA and basic...
can anyone tel me how to go abt the things with the Exp.
16th May 2011 From India, Delhi
Dear Lakshika, Kindly find the salary breakup and ESI, PF Calculation. If you have any clarification , feel free to contact me or in CiteHR senior persons.
16th May 2011 From India, Madras

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File Type: xls Salary Break Up Sheet sidd- April 2010.xls (41.0 KB, 25916 views)

Hi laxika
Its depends upon you how you balance a individuals salary. but as far as basic and HRA. this will be calculated at CTC (company cost). this is his final salary including all allowances, perqusites and benifits. basic will be 30-40% of ctc and hra will be 50% of basic if he resides in metro cities like delhi, kolkata, mumbai and chennai. other than these cities it will be 40% of basic. all other allowance you can calculate by your own. and as far as travell allawance it is up to 800 exemted. beyond this...you can.
j j

16th May 2011 From India, Delhi
Dear All,
There is no such rule for the deciding the percentage of Basic and other allowances, but Karnatka High Court in the Case of Airfreight Ltd., observed that salary/wages shall be (2:1:1) means basic including DA will be 50 % of salary, HRA will be 25 % and rest will be allowance paid to be any name.
As per EPF Act, PF is applicable on Basic and DA @ 12 % ,
ESIC @ 1.75 % on total salary but excluding washing allowance subject salary and wages < 15000/-.
CTC : Cost to the Comapny means all cost which is invested to the employees including PF 12 %, ESIC 1.75%, Gratuity 4.81 %, LTA, Medical (As per company policy), cost towards Leave (Paid Leave).
Hope this will help you to understand the issue.
17th May 2011 From India, Indore
Your question is not very informative. However, based on my experience this is usually the structure of salary.
Basic + DA ( in terms of % of basic pay which is revised every quarter, at present it is around 53% of basic), HRA is also a certain % of Basic depending upon class of city, in your case it might be 25 to 30 %, Travelling allowance in some industries is given as fixed % of Basic and in some it is a fixed amount, Washing allowance also has same treatment. By going through you pay structure/agreement, now you can calculate the components of your Gross Salary. As regards deductions, PF is a statutory deduction @ 10%, rest deductions vary from industry to industry and Orgn. to Orgn.
Feel free to know more.
Best wishes.
Arun Kr. Jain

17th May 2011 From India, Ranchi
Dear All,
As per your comments ,
1. Employer can give Basic no on the basis of % ( but most of companies paid on % Basis).
2. DA as per applicable.
3. HRA : Depend upon Empr its 25% to 50% Max.
4. Other components depend upon company to Comp varies ( Conveyance, Performance , Medical, Mobile, Tiffin, washing, LTA, etc allowance)
5. and all annual components (like: Diwali bonus, Annual Performance Bonus,Annual attendance Bonus, etc)
6. Employer contribution ( PF:12% on Basic+DA, ESI: 4.75% on Gross salary <15000- Excluding annual payout, Gratuity : Basic*4.81%)
7. All includes CTC.
As per Mr. M G Rabbani said: in CTC calculation ESI is 4.75% not, 1.75 % (1.75% is Employee Contribution)
17th May 2011 From India, Madras
Dear Sir, There are certain items which do not form part of basic wages and no P.F. is deductible, such as BONUS, LEAVE ENCASHMENT, INAM, AD-HOC ALLOWANCE,OVERTIME ALLOWANCE,PAYMENT MADE IN LIEU OF NOTICE, ETC. ETC, as has been decided by various courts from time to time .The concept of Basic Wages can be viewed in r/o "BRIDGE & ROOF Co,s case decided by Hon"ble Supreme Court.
With Regards,
17th May 2011 From India, Chandigarh
Dear Lakshika Nagpal,
While there is no specific Act to determine the Basic pay,
But certainly the Fixed DA (FDA) and Variable DA (VDA) are linked to whole sale/consumer price index which are provided by the Labour Dept. of the GOI once in a quarter. This is mandatory for all industrial houses. Rest all will vary from Estt. to Estt.
However follg. rates would apply -
PF @ 12% employee's & employer's (if not exempted), & DLI & EPF
Bonus (ex-gratia in lieu of bonus- min.@8.33%),
ESI (if covered) @ 1.75%-employee's subs. and 4.75% of employer's contbn.
Termination & retirement gratuity @ 15 days of salary for every year of qualifying service (Ref.Gratuity Act.)
Accident and death compensation as per Workmen's Compensation Act.
Materntiy benefits
These are mandatory provisions as per law.
17th May 2011 From India, Bangalore
i m still confuse with ESI part...
in salary brakup what all things are inculded in ESI ?
in my co. we break the salary as basic, HRA, travling All. , Spl. Allw. , incentives, Washing All.
What all parts of the salary will be added in order to calculate the ESI...
18th May 2011 From India, Delhi
and also PF is calculated only on Basic+ HRA or Only basic ..?? i knw that if basic or basic +hra is 6500 thn pf wont be deducted
18th May 2011 From India, Delhi
dear, Esi always deduct on total in hand salary including OT. PF always deduct on basic+DA Neeraj Uflex ltd noida 9718485060
18th May 2011 From India, Madras
Dear Lakshika,
I'll confuse little more, U invited more trouble, see the attachment. Don't blame me.
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.
18th May 2011 From India, Bangalore
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.
19th May 2011 From India, Bangalore
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
19th May 2011 From India, Gurgaon
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.
19th May 2011 From India, Madras
Comeon yaar, what next ? What is salary?

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 ?
20th May 2011 From India, Bangalore
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??
20th May 2011 From India, Gurgaon
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.
17th September 2011 From India, Mumbai
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
18th September 2011 From India, Gurgaon
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.
4th October 2012 From India, Hyderabad
Provident Fund:- Calculated on basic sal. which is 12% from employee and 12% of employer, and it is part of your CTC.
There are conditions for Provident fund:
1) 12% of basic contributed by employee
12% of basic contributed by employer
2) If Basic > 6500, there is a catch of 6500
12% of basic contributed by employee, but
12% of 6500 contributed by employer
3) If Basic > 6500, both
12% of 6500 contributed by employee
12% of 6500 contributed by employer
4) If Basic < 6500, then there is a catch of 5500
12% of 5500 contributed by employee
12% of 5500 contributed by employer
Note: any one condition could be followed in a organization, and employee could contribute voluntary i.e more than 12%
The ceiling coverage in ESI is gross salary<=15000, then eligible for esi benefits.
The contribution of ESI
Employee contribution is 1.75% of gross
Employer share is 4.75% of gross
9th November 2012 From India, Delhi
Dear PF is calculated on both Basic +DA and not HRA. HRA is calculated on basic +DA. The employees whose basic salary is less than 6500 Rs does not get the facility of PF. Regards Pooja Khanna
11th July 2013 From United Kingdom, Leeds
My office deduct 10% from Basic+DA and also contribute 10% by office, we are 12 employees, how we move to Contribution rate 12%, is it possible? any rule regarding this. Pl. reply/help.
4th June 2015 From India, Kolkata
How to join with NIPM.pls help me sir i am student in st.joseph college.
5th October 2016 From India, undefined
Hi, Is it mandatory to show ESI deduction in the appointment / offer letter of a new joiner. Regards, Pramila
27th February 2017 From India, Chennai
Hi, I want to know whether is it necessary to have a DA component in Salary structure especially for shipping company?
29th May 2017 From India
if employee not cover in esi after increment then employer part of esic will be add in his ctc ?
19th October 2018 From India, Pune
Dear All
++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
5th November 2018 From India, New Delhi
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