meet.singh
1

Dear All HR veterans
I have a question?
If a person whose gross is 14500 in a particular month worked for 22 days, and took leave of 4 days which all are paid leaves.
Now how we will calculate ESI deduction from his side?
1.75% of 14500 (total gross) ??
or 1.75% of 10633 ??
kindly help am very confused!!!!!
Regards
Meetu Singh

From India, Delhi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Alphonse
Manager -hr&a
Ommygautam
Plant Hr Head
Sahil0007
Head Of People Relations
Arun.bascon
Human Resources - Generalist
Pramod.singh0812
Hr Professional
Vkokamthankar
Asst. General Manager - Hr
Sivakumar1611
Recruitment, E.s.i. & P.f
VGKNAIRVKM
Accounts Officer
+4 Others

Anju_2003
2

SALARY CALCULATED ON ACTUAL MONTH DAY.SUPPOSE HE WORKED 26 DAYS IN THE MONTH OF AUG-11, HIS SALARY WILL BE 14500/31*26=RS.12161/-AND ESIC WILL BE DEDUCTED ON Rs.12161/-i.e 1.75% of 12161
From India, Delhi
Zenara_HRD
16

Hi Meetu Singh,
Salary Calculated based on actual no. of days in a month.
Suppose if u are calculating for Sept month then calaculation is
14500*26/30=Rs.12567(Present gross)
=12567*1.75%=Rs.220
Regards,
Vinay Kumar

From India, Hyderabad
pramod.singh0812
3

Hello Meetu,
ESIC is always payable at actual earned Salary -
Gross p.m. -14500/-
No. of working days (including holidays, paid leaves etc.) -26 days
month days - 30 or 31 (base will be taken accordingly)
Gross Salary for the month- 14500/31*26 =12161/- (for month comprising 31 days)
ESIC Contribution by employee - 213/-
Net Payable = 12161-213 - (any other deductions)=11947/-
Further, if any other help/ clarification requires, feel free to call / mail @ +91-98739 55 166 /
Regards,
Pramod S. Bhadauriya


arun.bascon
8

Hi Meetu Singh,
ESI calculation is based on gross salary of the employee.
ABC person worked for the month of 22 days and 4 paid leaves.
Total Days to be calculated for ABC Person = 22 + 4 = 26.
ESI Percentage of Employee = 1.75% and Employer = 4.75%
Gross salary of Rs.14500 / No's of days in the month * No's of working day = 12567.00
Actual Gross * Employee@1.75% = 220.00 and Actual Gross * Employer@4.75% = 597.00
I hope you will be clear.

From India, Madras
ommygautam
68

Dear Meetu,
calculation of salari is depend on company policy.
some companies are using actual working days for calculation salary and some companies are using month days for calculation of wages/salary.
so first of all you have to see what is your company policy.
if you making salary by the month days then gross salary/month day*total working days.
and if you are calculating the salary from actual days then you have gross salary/actaula monthly days ( as like 25,26 or 27) * total working days
in some companies they are using 26 for calculating for salary-
for example- gross salary/26*working days
from above you can get your salay of working days i.e earning salary
and for ESIC - Earnign salary*1.75/100
for any query pl. feel free to call.
Note- now contributin of ESIC has been done online.

From India, Rudarpur
sivakumar1611
21

Hi All,
I have questions to ask all
1) If the employee leave is paid leave then why you will deduct the salary from his salary earnings,
2) If the employee is on leave at that period have you shown him in ESIC attendance register mark as present or Absent, if you had shown in the register as Present then you have to calculate on total gross if not if you mark as a leave on that particular days then you have to deduct the that particular leave period.
3) the calculation you have to show to ESIC dept while calculating ESIC wages on 26 days only not on full month i.e., on 30 or 31st days
Regards,
Siva Kumar Tata

From India, Hyderabad
gupta.parul23
Dear Siva
In this case, the 4 days which are being deducted are not the 'leave with pay days'.
As per the Employee state Insurance Act, For the purpose of calculation of ESI, only the total no. of working days in a month are taken into consideration. So, the sundays or any other kind of non working days are deducted. Even if the employee has not taken any leave in the prescribed month, the calculation of ESI is done on 26 days and not on the basis of 30/31 days.
And the salary paid to the employee would be the (gross salary- ESI - any other deduction). And the paid leavve will not be deducted.
For any further clarification, you may discuss more.
Regards
Parul Gupta

From India, Panipat
VGKNAIRVKM
1


Dear all
Going through all these write ups i found lot of confusions. ESI has to be paid on actual salary paid during the month. So in case of leave with wages the employee gets full salary and hence the ESI Deduction and contribution will be on the full salary i.e., in this case on Rs.14500/-
In case it is leave without pay then the actual payment to employee is on actual amount paid (14500/30*26)*1.75%
In regular practice the payment of salary is considered on the basis on 30/31 days and not on the basis of working days.
The number of working days ie., 26 days is applicable only for gratuity calculation where the basic+da is devided by 26 to arrive the gratuity
Regards
VGKVKM

From India, Bangalore
sahil0007
8

Dear Mr Meet Singh,
ESIC calculation which will be done in your case will have no change and will be done accordingly. as the employee has taken a paid leave his ESIC calculation will
From the employee side = Gross Salary less than 15000*1.75% and employers side = Gross Salary less than 15000*4.75%.If the employee is on LWOP then the calculation will be done on the present days in that particular month accordingly.
Thanks and Regards,
Ravibhushan Pandav
HR & Admin Executive
9970967623

From India, Pune

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