Ramesh Kumar.S.N.
8

Human Resource
Dear All,
Please any one let me know the applicability of PF and ESI on salary in tamil nadu. our ctc components are Basic, HRA , Special Allowance, Conveyance Allowance and Medical Allowance. I exclude the CA , MA and HRA while calculating PF and ESI (Basic wages).. Is this corrct ?
In the recent PF inspection we found that Conveyance Allowance and Medical Allowance were also part of PF Basic wages.
Please share the updates on this clearly....

From India, Chennai
Harsh Kumar Mehta
916

Consultant in Labour Laws/HR
1. Sir,all allowances viz.-HRA, special allowance, conveyance allowance and medical allowance, if paid monthly in salary are part of "wages" so far as ESI Act, 1948 is concerned and contribution is payable on such components of wages.
2. For further details you can see the definition of "wages" in above Act.

From India, Noida
neel.m
Human Resource
PF deduct From Basic Amount
and
ESIC deduct on Gross income
PF. = 12% on basic+da, Employee = 12% on basic+da, EDLI = 0.5%
admin charges: 1.10% towards provident fund and for EDLI =0.01%
ESI: = 4.75% and Employee = 1.75%

From India, Shimla
Ramesh Kumar.S.N.
8

Human Resource
Hi Aneel,
I used to follow the same as calculating 12% on Basic since we have no DA. But in the recent inspection the Inspector told it should be calculated from Basic,Special Allowance and Conveyance Allowance

From India, Chennai
This discussion thread is old and is closed for new comments. If you want to continue this discussion or have a follow up question, please post a new thread. Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2021 Cite.Co™