Does Site allowance attract ESI and PF deduction? If we add the Site allowance which is being paid every month apart from the fixed gross salary the monthly gross crosses the limit of 21000. In that case, should we consider the ESI deduction?

And also the PF wages excluding HRA are below 15000. If we add Site allowance the PF wages are more than 15000. In that case, on which wages the PF is to be considered.

From India, Gurgaon
Executive - Payroll



EPFo- it doesn't matter what components you are providing to employee... its a captive amount of 15000 including all components, hence if employee gross is more than 15K deduction should be on on 15K - 1800, if gross is less than 15K should be on actual.

ESIc -If site allowance is a fixed monthly component as per employee ctc which is crossing 21k/month then yes employee doesn't fall into esic slab

From India, Hyderabad
Site allowance is over and above the fixed CTC. The fixed CTC is below 21000 per month. If the site allowance adds the monthly gross salary is above 21000. In that case, is the ESI deduction required to be continued.
From India, Gurgaon

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