Hi,
Meetu Singh
*The esic is not deducted on Gross Salary.
You have to see the breakup of salary components,
Make addition of all those components that constitute “wages” under the act.
It is this wages (amount) on which esic contribution is to be deducted or paid or payable from both side, i.e. Employee[1.75%] +employer[4.75%].
* If the employee is monthly paid (monthly rate,paid for actual month days) then wages are for the month days (30,31,28,29 as the case may be) irrespective of holidays authorized leave etc except LWP should be taken.
The Act prescribed different calculation for days for the different kinds of worker , i.e. piece rated, badli, time rated etc
In your case Here RS.14500 (which is < 15000) is taken as full monthly salary (time rated).
i.e 22(worked days) +4 (paid leaves)+weekly off (if any)
=22+4+4(suppose)=30days(total Month days)
Employees 14500*1.75% =254
Employer 14500*4.75% = 689
Total Contribution = 943
May this will help you
Regards
naresh
Meetu Singh
*The esic is not deducted on Gross Salary.
You have to see the breakup of salary components,
Make addition of all those components that constitute “wages” under the act.
It is this wages (amount) on which esic contribution is to be deducted or paid or payable from both side, i.e. Employee[1.75%] +employer[4.75%].
* If the employee is monthly paid (monthly rate,paid for actual month days) then wages are for the month days (30,31,28,29 as the case may be) irrespective of holidays authorized leave etc except LWP should be taken.
The Act prescribed different calculation for days for the different kinds of worker , i.e. piece rated, badli, time rated etc
In your case Here RS.14500 (which is < 15000) is taken as full monthly salary (time rated).
i.e 22(worked days) +4 (paid leaves)+weekly off (if any)
=22+4+4(suppose)=30days(total Month days)
Employees 14500*1.75% =254
Employer 14500*4.75% = 689
Total Contribution = 943
May this will help you
Regards
naresh