Talentsorcerer
Talent Acquisition Expert
Cameo
Manager
Vasanth Nandhi
Junior Executive - Human Resource
+1 Other

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Respected to my seniors,
Sir/Mam i have few doubts which i request u to kindly help me out as i am confused with the below mentioned points-
1)I wanted to know if somebody's basic salary is 50000, then how much percentage of pf, would be deducted? and till how much amount of basic salary would pf be deducted and what is the advantage of deduction of pf?
2) How to calculate ESI,DA,TA,HRA,LTA,Conveyance Allowance,Overtime allowance,Entertainment allowance? I meant will these be calculated with basic salary or with gross salary or with CTC.....and what are the advantages of deduction of ESI and how will that benefit us in future?
Sir/Mam kindly let me know advanatges of DA,TA,HRA,LTA also....
Kindly help me out as i urgently need it for which i would be very grateful to u all.....Please reply to all above questions very soon.....

Not again! This seems to be a recurring trend now.
Ajay - best if you use one of the salary calculators in Excel that a few generous contributors have uploaded. They have the break % of every component and the contribution margin as well so you can learn them.

I am very new to these fields so dont have any ideas rearding it, Hence i wanted few help from u expereinced and genius professional....... Regards, Ajay Hr Executive
Ajay: Appreciate your patience. As advised, download one of the excel salary calculators and read through the calculation percentages.
Hi Ajay,

It is apparent that you are totally confused. You are mixing up too many things. If your company is large and has established scales of pay, then they would have already fixed your salary and allowances. The basic salary, DA , HRA,LTA,Conveyance Allowance,Overtime Allowance,Entertainment Allowance are the fixed by the company at their discretion. If you are a workman and your factory comes under the Factories' Act, only then the DA is declared by the Government. Otherwise, even DA, whether to give to employees or not, is at the discretion of the company.

The contributions to EPF, ESI and Professional Tax are to be paid to the Government at the rates fixed by the Government. If you are drawing a gross salary of more than Rs.15,000 pm, then you are out of the purview of ESI.

The total amount consisting of your Basic Salary, DA (if any), and all other allowances included, is known as your Gross Salary.

The amount net of all deductions towards EPF, ESI, Professional Tax and Income Tax, if applicable, is known as your Net Salary or Take Home Salary.

In addition to the Gross Salary, the company incurs other expenses on employees like free or subsidised refreshments, meals, transportation, employer's contribution towards EPF and ESI, medical facilities, if any, etc. and all these added up is known as CTC (Cost to the Company).

The percentages of contribution to EPF and ESI (both employees' and employer's) are available on thousands of webpages. Do a Google search.

[QUOTE=Cameo;2196263) Thank you so much professional. It was indeed useful to me. Just what i needed. have a great week ahead!! Regards, Ajay Hr Executive
Dear professionals, I need some information regarding PF, When deoes an employee eligible for pension scheme?
An employee is eligible for pension scheme only if he has a continous 10 years service and after he get 58years old to avail the benefit.. If i am wrong then please correct me professionals.
[QUOTE=Cameo;2196263]
Hello i wanted to know -1)can a company deduct income tax/pf/esi/professional tax with very low employees?
2)how many direct and indirect emplyoees are required for pf,esi,pt,income tax deduction?
3) what if a company is having more number of trainees then will their be pf,esi,pt and income tax deduction?
Looking forward for your response......
Regards,
Ajay
HR Executive

[QUOTE=talentsorcerer;2196066]
Hello i wanted to know -1)can a company deduct income tax/pf/esi/professional tax with very low employees?
2)how many direct and indirect emplyoees are required for pf,esi,pt,income tax deduction?
3) what if a company is having more number of trainees then will their be pf,esi,pt and income tax deduction?
Looking forward for your response......
Regards,
Ajay
HR Executive


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