Does the gross salary normally include the employer’s contribution to PF (12%) and the employer’s contribution to ESI (4.75%) scheme?
From India, Calcutta
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From India, Calcutta
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The gross salary includes employee’s contribution to PF but excludes the ESI bit of it.
From India, Mumbai
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From India, Mumbai
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Hi Ajay,
If I have understood correctly, the gross salary of an employee includes PF and ESI shares of the employee as well. For example, if my gross salary is 8000, the breakdown would be as follows:
- Basic Pay: 3600.00
- HRA: 1800.00
- Food Allowance: 450.00
- Conveyance: 800.00
- Medical Reimbursement: 1250.00
- Books & Periodicals: 100.00
Therefore, the gross salary would be equal to the net salary plus the PF amount deducted and ESI amount deducted. Other deductions may also be considered based on the company's policy.
8000 = 7428 + (432 + 140)
I hope I have made myself clear.
Regards,
Sashmita
From India, Delhi
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8If I have understood correctly, the gross salary of an employee includes PF and ESI shares of the employee as well. For example, if my gross salary is 8000, the breakdown would be as follows:
- Basic Pay: 3600.00
- HRA: 1800.00
- Food Allowance: 450.00
- Conveyance: 800.00
- Medical Reimbursement: 1250.00
- Books & Periodicals: 100.00
Therefore, the gross salary would be equal to the net salary plus the PF amount deducted and ESI amount deducted. Other deductions may also be considered based on the company's policy.
8000 = 7428 + (432 + 140)
I hope I have made myself clear.
Regards,
Sashmita
From India, Delhi
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Hi,
I think the question has been a little misinterpreted. The question was about the employer's contribution and not the employee's. In my opinion, it is company-specific. Our company includes both employee and employer contributions as a part of the gross salary. Some organizations keep it out. There is no thumb rule for the same, in my opinion.
Regards,
Avneet
From India, Gurgaon
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I think the question has been a little misinterpreted. The question was about the employer's contribution and not the employee's. In my opinion, it is company-specific. Our company includes both employee and employer contributions as a part of the gross salary. Some organizations keep it out. There is no thumb rule for the same, in my opinion.
Regards,
Avneet
From India, Gurgaon
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The gross salary includes both PF and ESI contributions of the employer by definition and practice. Rahul Kumar
From India, New Delhi
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From India, New Delhi
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Hi Rahul,
We do not include ESI as a part of the CTC offered, and we also term it as Gross Salary. Although I agree that by definition, it should include both, the dimensions of this definition could be company-specific.
Regards,
Avneet
From India, Gurgaon
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We do not include ESI as a part of the CTC offered, and we also term it as Gross Salary. Although I agree that by definition, it should include both, the dimensions of this definition could be company-specific.
Regards,
Avneet
From India, Gurgaon
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hi, Gross salary doesn’t include pf & ESI employer contribution. For CTC calculation PF & ESI employer contribution is included. thanks vaitheeswaran
From India, Bangalore
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From India, Bangalore
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It is illegal to deduct employer’s part of contribution to PF & ESI frm the gross salary. If this thing is happening in your company then you people will be in big trouble. Regards Abhi
From India, New Delhi
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From India, New Delhi
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I think you have misinterpreted it. You are doing an illegal thing only if you are deducting more than 12% of the basic+da component of the salary as PF. When one says your salary will be 240,000 per annum, it obviously means that this amount includes basic+da+hra+pf. Instead of paying the PF to the employee, it gets deposited with the PF authorities, which he will get after he retires. That's all.
From India, Calcutta
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From India, Calcutta
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ESI contribution rates lowering.pdf