Dear Sirs, As per NEW SOCIAL SECURITY CODE, would the wage ceilings for EPF Contributions and ESI continue and will attract ESI contribution on 50% Allowance which are not part of wage as per latest WAGE DEFINITION. Kindly explain...
From India, Nizamabad
8From India, Nizamabad
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Yes Sir. i completely agree with you, My question is pertaining to Wage Definition in Social Security Code.
As per ESIC - Wages allowances also attarcts ESIC COntribution, whereas ocial Security Code defines Upto 50% of allowances in wages are excluded. sothat ESIC contribution excludes this clause or not
From India, Nizamabad
As per ESIC - Wages allowances also attarcts ESIC COntribution, whereas ocial Security Code defines Upto 50% of allowances in wages are excluded. sothat ESIC contribution excludes this clause or not
From India, Nizamabad
Esic is applicable on total gross salary which includes allowances what soever it is.
The wage code main crux is that if allowances is more than 50%, then the % exceeding more than 50% be merged into basic and DA.
So far no such notification is issued by epf or esic in the contribution limits and it is same.
From India, Vadodara
The wage code main crux is that if allowances is more than 50%, then the % exceeding more than 50% be merged into basic and DA.
So far no such notification is issued by epf or esic in the contribution limits and it is same.
From India, Vadodara
PF % is calculated on BASIC ad DA..Where as ESI deduction is calculated on Gross salary.Hope this clarifies your doubt. Regards, priya
From India, Bengaluru
From India, Bengaluru
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From India, Delhi
The most important tax benefit available to Companies of such Gratuity Trust/Fund is available under Section 36 (1) (v) of the Income Tax Act 1961, which is not available to when company made provision of Gratuity Liability in the Balance Sheet (Refer Section 47A (7) of Income Tax Act 1961).
We have almost 12 years of experience in providing above Consultancy Service. The details of Consultancy Services are as under: -
A. Formation of a New Approved Irrevocable Gratuity Trust.
B. Investment of Trust Money as per Income Tax Rules 1962.
C. Drafting of Board Resolutions Trust Deed, Trust Rules, Applications.
D. Approvals of Trust in terms of Part C of Schedule IV from Income Tax Department in following cases :-
i. Approvals for New Gratuity Trust or Group Gratuity Scheme
ii. Approvals for Change in Trust Deed
iii. Approvals for Change in Trust Rules
iv. Approvals for Change in Object of Trust
v. Approvals for Change in Trustees
vi. Approvals for winding up of Trust due to winding up of the Company
vii. Approvals for amalgamation with another fund due to merger/acquisition of Company
In case of any of requirement, you may send email at
From India, Delhi
I think that the question relates to the calculation of subscriptions to ESI and EPF schemes under the newly enacted Code on Social Security,2020. One of the salient features of all the four Labor Codes is that they provide for uniformity of interpretation of certain terms like 'wages' commonly occurring in all the Codes. The important aspect of the definition of the term 'wages' is that in general only those components of basic pay, dearness allowance and retaining allowance,if any should be considered as wages for the purposes of each Code subject to the condition of their sum total remains always at equal proportion to the sum total of the remaining components in the wage/salary structure. If the equality in the proportion is disturbed by lesser fixation of the inclusive components, it has to be restored by adjusting from certain excluded components specified in the definition.
Since the enforcement of the Codes and their Rules is awaited, let us wait and see how the treatment of subscriptions to the schemes of ESI and EPF is prescribed under the notifications to be issued by the Central Government in this regard.
From India, Salem
Since the enforcement of the Codes and their Rules is awaited, let us wait and see how the treatment of subscriptions to the schemes of ESI and EPF is prescribed under the notifications to be issued by the Central Government in this regard.
From India, Salem
Wage-ceiling-ep f-6500-15000-ci rcular-circular .pdf
Salary Calculation With OT ESI EPF ADV(1).xls
ESI & EPF REGISTRTION DOCUMENT.doc