If a company pays gross salary more than minimum wage, pay ESI & PF on gross - CiteHR
Srinath Sai Ram
Hr Manager
+1 Other

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If a company pays gross salary more than minimum wage, pay ESI & PF on gross. But no DA Component in salary structure.
Then this structure is legally right or not?
Example:
Salary
Basic 6000
HRA 3500
Others 500
Basic wage as per minimum wage - 5600, DA-3500.

As long as you pay more than the minimum wages, and pay ESI & PF on gross wages, no Inspection official will question you.
Dear Babu Alexander Sir, "and pay ESI & PF on gross wages,"
PF is paid on Basic+DA+VDA

ESI contributions is always on Gross wages. Your classification of Basic , DA and VDA , will attract ESI and PF contributions.
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