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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.
From India, Hyderabad
hi frnds.
its me sivasakthere i want to give more importance in no hi.. i had completed my mba -hr 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........

From India, Selam
correct me if i am wrong ESI is calculated as 1.75% of basic salary pf is calculated as 12% of basic salary
From India, Mumbai

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.

From India, New Delhi

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

From India, Hyderabad
sohini basu roy

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......
From India, New Delhi
Attached Files (Download Requires Membership)
File Type: xls CTC_SALARY_SLIP_FORM_(legal)(1).xls (27.5 KB, 2687 views)

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

From India, Madras


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.


Amit Seth.

From India, Ahmadabad
Rajendra Madhur
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
From India, Pune

Hello All i am attaching salary stackup which we are using. Newage
From India, Pune
Attached Files (Download Requires Membership)
File Type: xls Salary Stackup.xls (15.5 KB, 829 views)

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