Esic Deduction [Thread 166540]

Dear Nagi,
But a compnay has diduct pf on 2600, 2934, etc. how i can suggest him, he will be diduct pf on minimum basic, he want proof of pf diduct of minimum basic

You are right Mr. Satish Arrears always calculated in gross salary. But Pl.See Gross Salary should not be more than Rs. 10000 Pm.
Subhash Sharma
Mgr. (P & A)

Dear Friends
For your information we are adding the travelling reimbursement for our sales employee. In some months of our employees are getting more than 10,000/- as a gross salary. We are calculating the ESI amount with inclusive of travelling reimbursement. I want to know whether the travelling reimbursement has to be included or not while calculating the ESI amount ?

if it is possible, please send me that Govt notification that PF should be deducted on minimum wages i.e. on 3934.or try to explain in details.

Halo Sridhar,
ESI will be deducted on Gross salary which includes Basic,HRA,Conveyance allowance,Special Allowance if any.Fooding & Medical Reimbursement will be excluded.
Also the Gross Salary must be less than 10,000.
Regards,
Sangeeta

Dear pal,
If you provide your salary structure, Deductions of P.F.&E.S.I. can be determined. Ex : PF will be deducted on Basic Salary+D.A.+Cash equvlnt. to foodgrain supply, whereas E.S.I. can be deducted on Gross Salary. Depends on salary component, whether it will form Gross Salary or not. Ex : Coveyance will not be included in Gross Salary.
For any query you have to be feel free to send to my mail ID
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bai,
P.Sathish Kumar
91-9885700350

Dear Sridhar,
Your query is right. The allowances that you have mentioned will not form the Gross Salary. In addition to that Entertainment Allowance, Washing Allowance, Other Reimbursements & any another allowance which will be paid at intervals exceeding two months will not form the Gross Salary.

please specify you question correctly, so as to help accordingly. Self has the vast experience on the subject
regards
Surya