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sudhansusekhar
3

sir, i want to know about how to calculate pf, esic, pt,it etc...
From India, Mumbai
ZM SOLUTIONS
1

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From India, Mumbai
Mahavir.Singh
91

Dear Shekhar,
Greetings of the Day,
Please type your query in the box above -- TYPE SEARCH QUERY and then You will a lot of option on screen and you can get the solution of your problem.
For example Type (How to Calculate PF) then you will a lot of good answers.

kuldeeprawat21
115

Hi,

PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- .

1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)

2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)

[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]

EDLI - Employee deposit link insurance

EPF:

Here this PF is normally deducted from the basic & DA ( dearness allowance )

Such that Basic salary - 35%

DA - 15% outof gross salary.

For (e.g) - If the gross salary of a person is Rs.9000/-p.m

Basic- 35% @ 9000 - 3150

DA - 15% @ 9000 - 1350

Total -------

4500

--------

Such that the total amount would be deducted @ 12% (i.e) PF - 540/-

The maximum ceiling limit of PF - Rs.6500/-

If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.

Provident fund is calculated towards the employers is 13.61%

1. Employers Contribution

2.EPF A/c No.1 - 3.67%

3.EPF - Admn Charges - 1.1%

4.Pension Fund A/c No.10 - 8.33%

5.EDLI A/c No.21 - 0.5%

6.EDLI - Admn Charges - 0.01%

ESIC calculation:

-------------------

In this ESIC, it includes the medical benefit both for the employee and employer.

It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.15000/- p.m

Employee side - 1.75% and Employer side - 4.75%.

So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-

Employer 8000*4.75% = 380/-

Therefore Net pay = Gross pay - Total deductions

1. Those who are getting 15000/- gross per month will not be applicable under ESIC act.

2. 20 eligible employees to get registered in ESIC

3. Eligible employees means those who are getting gross pay upto 15000/- .

From India, New Delhi
Mahavir.Singh
91

Dear Kuldeep ESIC is applicable till Gross Salary 15000 Per Month. It will Also applicable on 15000 PM. Not More then it I am just clarifying it little more.

masterfiroz
Also i would like to add, that if there is a provision of washing allowance in the salary structure then the washing allowance will get deducted for calculation ESIC.
From India, Pune
vani@
1

hello sir, I want to know about the gratuity & pension scheme ?
From India, Mumbai
kuldeeprawat21
115

The Payment of Gratuity Act 1972:-

Gratuity is a voluntary Payment made by the employer to the employee in recognition of continuous, meritorious services and sincere efforts by the employee towards the organization.It is governed under the Payment of Gratuity Act 1972.It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, Oilfields, plantations, ports, railway companies, and shops or other establishments.

Applicability:-

As per the Gratuity Act, the scheme for the payment of gratuity is available to:

Employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental with.

Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

Such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.

Employee :-

The term “employee” is defined in Section 2(e) of the Act as any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;’.

Gratuity Entitlement :

-Gratuity is payable to an employee (nominee – in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death or disablement due to accident or disease.

Exceptions:-

Forfeiture of gratuity amount wholly or partially or to the extent of Damage /loss in case of an employee whose service has been terminated for:

Any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer; or

Act of riotous or disorderly conduct or any other act of violence on part of employee; or

Any act which constitutes an of­fence involving moral turpitude, in the course of his employment.

Nomination:

In case of death, the gratuity is payable to any of the following persons:

Nominee

Heirs (in absence of nomination)

In case nominee/ heir is a minor, such amount will be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.

The Gratuity limit has been raised from 3.5 lakhs to 10 lakhs:-There has been amendment in the Payment of Gratuity Act 1972, following proposal of Labor and Employment Ministry, demands from trade unions and others to remove the ceiling or increase the maximum payable amount, which was fixed in 1997. It shall come into force on 24 May 2010 as per the Notification in the Official Gazette.

Maximum Limit :-

The Gratuity limit as per Section 4(3) has been raised from 3.5 lakhs to 10 lakhs. This will give advantage to both private and public sector employees. According to this new amendment, the maximum gratuity exemption as per IT Act also increases to Rs. 10,00,000.

Determination of Gratuity Amount

For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned.

The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.

The amount of gratuity payable to an employee shall not exceed Rs. 10,00,000 (increased from Rs. 3,50,000).

In order to compute the gratuity payable in case of employees em­ployed in seasonal establishments, daily wages, or piece rated employ­ees. Computation will be as per the provision of the Act.

It can be formulated as follows: Basic + DA (Wages Last drawn)* 15days 126 * number of years of continuous service

From India, New Delhi
myhrsoft
11

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11

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