There is a problem regarding the ESIC, i.e., whether the ESI is to be deducted on gross salary or basic salary. Suppose the salary of ₹18,000 is decided by the employer, then the basic is ₹18,000 * 40% = ₹7,200. In this case, I should deduct the ESI contribution of 4.75% from the employer and 1.75% from the employee's contribution. The question is whether these percentages should be deducted based on the basic salary of ₹7,200 or the total salary of ₹18,000.
Please provide clarification on this issue.
Regards,
Rajesh
HR
From India, Hyderabad
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1Please provide clarification on this issue.
Regards,
Rajesh
HR
From India, Hyderabad
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Please note that if salary <15000 only eligible for ESIC. It should be on gross salary only. REgards Eswar.k 8056041800
From India, Chennai
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From India, Chennai
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First, ESI is calculated on the monthly gross salary. Second, any employee receiving a monthly gross salary of more than 15,000 does not fall under the purview of ESIC. For any further clarification, feel free to write or discuss.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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We have to take into consideration the gross salary only for the calculation of ESI. The ESI eligibility amount has been increased from ₹10,000 to ₹15,000.
Following your example, if the salary is ₹18,000/-, the gross salary may be ₹13,000/-.
ESI Calculation:
- ₹13,000 * 1.75% for the employee
- ₹13,000 * 4.75% for the employer.
Regards,
JAGADEESH (HR & Admn)
From India, Tirunelveli
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Following your example, if the salary is ₹18,000/-, the gross salary may be ₹13,000/-.
ESI Calculation:
- ₹13,000 * 1.75% for the employee
- ₹13,000 * 4.75% for the employer.
Regards,
JAGADEESH (HR & Admn)
From India, Tirunelveli
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SALARY SHEET CALCULATION.xls
Employee Benefits.doc