No Tags Found!

Could anybody please confirm what is the amount to be calculated for PF, EPS & ESI i.e Whether we have to consider only the BASIC amount of th e Salary for calculation or any other Salary Head to be added to BASIC.
What is the minimum wage for calculating ESI

From India, Madras
bhushan dahanukar

Mr. Shankar Ganesh,
You need to learn more on PF & ESI.
PF Wages means Basic + DA+ Food subsidy+leave encashment(if paid). On PF wages, employee contribute 12% and employer also contributed 12%. The employer contribution splited into PF 3.67% and Pension 8.33%. The PF wages ceiling upto Rs.6500/-.
ESIC wages means basic+DA+allowances+overtime. But Conveyance should not considered. the ESI revised limit Rs.10,000/-. the employee contributed 1.75% and employer contributed 4.75% on total ESI wages.
The minimum wages also attract to ESI deduction.
Bhushan Dahanukar

From India, Mumbai

Dear Mr. bhushan dahanukar,,PF Calculates is doing on Basic + DA only, No need to include leave encashment and food Food subsidy.Under ESI deduct on gross salary (gross salary means basic+DA+HRA+Convenience+Special Allowance) all components comeing under gross salary. you must deduct on gross salary.RegardsSrinivas B
From India, Hyderabad
Rajeev Verma

I am attaching a file containing the details of ESI wages........ Just go through it........
From India, Delhi
Attached Files (Download Requires Membership)
File Type: doc ESI Wages.doc (61.5 KB, 5695 views)


Hi Friends,
Can anybody clarify my following queries:
1) How do calculate monthly salary of Rs.15000/- in case of daily rate wages, what is the rule applicable for absenteeism. For eg. if a person work 30/31 days in a month he will exceed the monthly salary of Rs.15000/- if he/she absent for even one day his salary will be below Rs.15000/-. In such case whether he/she is eligible for ESIC deduction or not.
2) A employee is de-covered from ESIC Coverage in the month of October-12 to January-13 as his salary was more than 15000/- but in the month Feb-13 he gets only 28 days salary which is less than 15000/-. What is the rules applicable as per ESIC Act.1948. Whether employee will be recovered for ESIC deduction or not?
Sudhakar M. Acharya

From India, Mumbai

Dear Friends,
My question is " for daily rated wage system" i.e.
1) How to treat absenteeism while calculating ESIC salary of Rs.15000/- for example Workman A worked for 31 days in Jan-13 and got a monthly salary of Rs.15500/- and workman B woked only 28 days he got a salary of Rs. 14000/- only. In such case the workman B is eligible for EISC Deduction. In my view he should be de-covered from ESIC as if he had woked for 31 days his salary would be Rs..15500/-
2) Similary in the month Feb-13 e.g. The workman A will get only 28 days salary i.e. Rs.14000/- which below Rs.15000/- whether this workman A is eligible for ESIC deductions?
Nothing has been mentioned in the Act. The act says the eligible salary per month for ESIC deduction is Rs.15000/-
Please clarify.
Sudhakar M. Acharya.

From India, Mumbai

Dear Mr. V. Srikanth,

Thank very much for the information. but sir, my query is totally different.

I know the eligibility salary for ESIC is Rs.15000/- and the contribution period is April to Sept. & Oct. to Mar.

Even if an worker once covered in the month April or Oct. irrespective of wages, whether it is more than 15000/- or less than that, employer should deduct the ESIC. Here, there is no issues for those monthly paid workers.

But the issues is here, we are paying our workers on daily basis i.e. they will get the wages for no. of days worked in a month. If an worker work for full month days i.e. 26 days (excluding Sundays) he will get a wages of more than 15000/- and eventually he will be out of esic. However, if a worker absent for 2 days and if he gets only 24 days wages then his wages will be below 15000/- My question is how to treat such worker, are the employer bound to deduct ESIC of this worker? or he will be out of ESI coverage as if he had have worked for 26 days his salary would be more than 15000/-.

Also since October -12 to January-13 most of our workers are getting more than 15000/- wages as they work 26/27 days (Excluding Sundays) they were out of ESIC. But in this month i.e. Feb-13 having only 28 days and the worker will get wages of 24 days only and their wages will be less than 15000/- wages only. Here also my question is, Are they recovered for ESIC or not?

Kindly advise me.


Sudhakar M. Acharya

From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.