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Can I get the help on "How to prepare payroll".Is any software mandatory for that or it can be done manually.If example is there it will be halpful. Thank you in advance.
hi frnds.
its me sivasakthere i want to give more importance in no hi.. i had completed my mba -hr ...in my college life they havent thought how to calculate pay roll, pf ,esi etc,,,
can any one help me out regarding the same topic and area where i want to be aleart and learn on non IT -IT FEILD.......
Because i am fully laking behaind this part........
correct me if i am wrong ESI is calculated as 1.75% of basic salary pf is calculated as 12% of basic salary
Hi rakesh you are absloutly right. pf is contributed 12% from employee side on basic salary, 12% from the employer side.
ESI is 1.75% from employee side, 4.75% from employer side on basic salary.
Neesu
Hi all,
Employee ESI contribution = 1.75% on gross
Employer ESI contribution = 4.75% on gross
slab for ESI is Rs.10,000/- gross, if an employee's gross is above the mentioned slab, he will not be covered under ESI.
Employee PF contribution = 12% on BASIC
Employer PF contribution = 12% on BASIC
PF slab is Rs.6500/- basic, over and above which no need to pay PF, i.e. maximum contribution is Rs.780/- (12% of 6500)
Actually all the employees must be covered under PF even though their basic is above 6500. However, there is an exception for this, an employee with the prior consent of the employer can exempt himself from PF contribution.
plz do let me know if u have any more doubts or if u dont understand something
warm regards
Sirisha.k
hello everybody, heres a format where you can find the full calculation of salary along with the % of deduction.....hope this will solve your purpose......

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Hi
PF Employee Contribution Calculation - 12% on Basic + DA
ESI Employee Contribution Calculation - 1.75% on Gross Salary
PF Employer Contribution Calculation - 13.61% on Basic + DA
ESI Employer Contribution Calculation - 4.75% on Gross Salary
Hi,

Payroll is the salary processing system.
Payroll can be seen from two aspects. One is from HR side and other from commercial people side. The HR persons process the payroll by means of sending attendance details or better say LWP details and other complete details that an employee is going to get in a particular month.
And after receiving those details the commercial people start making entry into payroll software and can be said start salary processing.

Well while processing salary fro a particular month we the HR personals provide complete LWP (Leave without Pay) details to the commercial dept.
While calculating LWP, we prepare the attendance sheet with teh weekly offs. And apart from weekly offs we check how many days an employee is absent, out of which how many days he was on leave that we crosscheck with leave applications. If the particular employee has given the approved leave application form and that leave is been there in his account then we put him on leave.
But If the person has not submitted the leave application form or he doesn't have any leave in his balance then for that particular day that employee will be assumed absent, and we will deduct his salary for that day.
Similarly if there is any provision to provide one days extra salary for an specific day if the employee does come, then we calculate one day extra salary for those employees who were present on that day.

I hope now it will be very much clear to you. If not pls revert.

Regards,

Amit Seth.
Hi Rakesh, a little correction I would like to make - ESI employee share = 1.75% of Gross salary ESI Employer share = 4.75% of Gross Salary Total Contibution is 6.5% of gross salary. Raj
Hello All i am attaching salary stackup which we are using. Newage

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Hi Shiva, Herewith I am attaching compensation & benefits Info. this info I got from senior citehr member. I hope this will be help u. Prakash — — — — — -

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Hello,
PF Employee Contribution Calculation - 12% on Basic + DA + Food Allowance
ESI Employee Contribution Calculation - 1.75% on Gross Salary
PF Employer Contribution Calculation - 13.61% on Basic + DA + Food Allowance
ESI Employer Contribution Calculation - 4.75% on Gross Salary
Akanksha Kukhraniya
Dear friends
Just i want to know how the salary is calculated ,how much percentage is to be divided for BASIC,HRA,DA & another allowances.Payroll Processing is differ from one company to another company.Please give me the brief discussions.
Thanks & Regards
Paramagurunaath.SPS
could you please tell me that how to prepare payroll. Please do let me know what are all general benefits will come in the payroll. regards Ramesh
hi,
wat Sirisha.k says is curruct.
And regarding payroll.
depends on company they will take heads like Basic,HRA,TA,FBP,Allow,Bonuse,etc..
the % also same, few are takeing the basic is 35% or 40% or 45% on Gross.
so,we are not say exectly.
byee
Hi,
The percentage that is divided for the various components varies from one company to another.
In my company we have the following components.
Basic, HRA, CA and CCA
Where basic is 55%
HRA(house rent allowance) is 20%
CCA (City compensatory allowance) is 15%
CA(Conveyance allownace) is 10%
All the above components are calculated on gross.
Where Gross is ctc-employer contribution of pf and ESI(if applicable)

Calculations for PF and ESI

PF to be calculated on Basic
Employer and employer 12%
for basic above 6.5k pf is constantly 780
ESI to be calculated on Gross
Employer 1.75%
Employee 4.75%
EsI applicable only upto net 10k
Net pay is gross - pf-esi-pt
The Professional tax (PT) has the following slab.
Rs.3000/- to 4999/-** --- Rs.30/-
************* 5000/-*to 7999/-** --- Rs.60/-
************* 8000/- to 9999/-** --- Rs.100/-
*********** 10000/- to 14999/-* --- Rs.150/-

Above Rs.15000/- it is Rs.200/
Hope it clarifies.
Regards,
Jayashri
ESI Employee Contribution Calculation - 1.75% on Gross Salary (always roundup) Ex: if contribution amount is Rs.50.20 then you have take it as Rs.51.00
ESI Employer Contribution Calculation - 4.75% on Gross Salary (even employer contribution is also round up)
PF employee- 12% of Basic+DA
PF employer- 12% Basic+DA (out of which 8.33% is towards Pension and 3.67% to PF)
[QUOTE=sharmaneesu;378907]Hi rakesh you are absloutly right. pf is contributed 12% from employee side on basic salary, 12% from the employer side.
ESI is 1.75% from employee side, 4.75% from employer side on gross salary.
ashok
:confused:hi,
you said ESI contributed on gross,so pls can you specify that gross includes the basic salary+incentives or wht it includes.iam little bit confused!! plz do let me know more abt Esi.
And one thng more abt competancy mapping how it measures as it is my project topic.so plz guide me regarding it.
Dear all,
I am attaching the simple salary process in Excel learn it. It will be very useful.
Every one should know how to work in Excel and process of Salary.
It include all the details like PF ESI etc.
I thing that have provided the valuble resource to you all.
Kindly view the attachment.
Warm Regards,
vinoth.R

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Hi Jayshri, As far as i know ESIC contribution of Employee is 1.75% & Employer’s contribution is 4.75%. Regards,
Hi All This is Devendra I Want to know that for caluclation of salary how many days shall be counted per month i.e 26, 27, or 30 and 31. Dev
Hi,
Everybody.I am a HR Executive in a private concern. I would like to learn the entire Payroll process that has been handled in a corporate and would like to know about PF,ESI...Kindly send me the related information so that it would clear all my quries...
Thanks & Regards
Deepa.K
Hi Jeyell,
If i am right,
PF Employee Contribution Calculation - 12% on Basic + DA
PF Employer contribution also 12% on Basic + DA
Among that 12%(Employer Contribution), 8.33% goes to PF Scheme and remaining 3.67 goes to Pension Scheme.
Thanks and Regards,
Jai
Hi Friends,
If I am right,
PF:
Employee Contribution 12% on Basic+DA
Employer Contribution 12% on Basic+DA(Among this 12%, 8.33% will go to PF Scheme and remaining 3.67% will go to Pension Scheme)
ESI
Employee Contribution 1.75% on Gross Salary
Employer Contribution 4.25% on Gross Salary.
If i committed the mistake anywhere just let me know.
Thanks and Regards
Jai
HI,
please find the breakup of PF for employee and employer side. The employer amount goes into five accounts , account No 1,2,10,21,22.
PF Challan --------
Following challans duly filled in should be submitted -
P.F. Cont. (Employee's+Employer's Share) A/c No. - 01 - 12% + 3.67%
Pension Fund Contribution A/c No. - 10 - 8.33%
Administrative Charges A/c No. - 02 - 1.10%
E. D. L. I. F. A/c No. - 21 - 0.50%
Administrative Charges A/c No. -22 - 0.01%
I believe it will be usefull for you. :)
Thanks,
Shuchi
Hello sir, I am searching for the job in HR.I have completed M.P.M in 07 and having 1 yr exp. in Consultancy. please Guide me. Nidhi Saxena
Hi all,

Employee ESI contribution = 1.75% on ESI earning gross
Employer ESI contribution = 4.75% on ESI earning gross
Note: Washing allowance is exempted from ESI earning.
And the cutoff limit for ESI is Rs.10,000/- PM, if an employee's gross is above the mentioned cutoff after the First half or before, then he will not be covered under ESI act. But in between 1st and 2nd half ESI gross will cross the cutoff limit then he has to contribute till 1st or 2ns half will not over.
1st half: Apr to Sep
and 2nd half means : Oct to Mar

And also if employee is drawing average daily wages less than 70 Rs. per day then, employee need not to pay ESI, only employer will be paying 4.75% on ESI earned gross.

Employee PF contribution = 12% on BASIC+DA
Employer PF contribution = 12% on BASIC+DA
PF Cutoff limit is Rs.6500/- , over and above which no need to pay PF, i.e. maximum contribution is Rs.780/- (12% of 6500)
Actually all the employees must be covered under PF even though their Basic+DA is above 6500. However, there is an exception for this, an employee with the prior consent of the employer can exempt himself from PF contribution.

plz do let me know if u have any more doubts or if u dont understand something

warm regards
Hansraj Pawar
Hi all, There are many payroll vendor who provide the software/solution to process our payroll... why to worry!!!, they will provide the solution. We can make use of them.
Dear jayshri, Little correction in ur post employer’s contribution towards ESIC is 4.75 % and employee contribution is 1.75%. Regards Jai
EMPLOYEE ESI CONTRIBUTION IS=1.75% ON GROSS SALARY
EMPLOYER ESI CONTRIBUTION IS =4.75 AND TOTAL =6.50%
EMPLOYEE PF CONTRIBUTION =12% OF BASIC(MAXIMUM bASIC IS RS.6500/-)ON Earned Monthly Salary
EMPLOYER PF CONTRIBUTION =12%
Hi.. Jayashri Madam.. Please send me One Month salary Calculated excel sheet. May i know What are Statutory Payments and Statutory Deductions. Regards Nagabhushana.B
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