Confused About PF and ESI Deductions? Need Help Understanding Eligibility and Calculations!

10th September 2008

Hello Sir,

I am Bharathi from Chennai. I have recently secured a job in a hospital. I am unsure about how to deduct PF and ESI. Could you please advise me on whom we need to deduct PF and ESI for, and what the eligibility criteria are for PF and ESI contributions? Additionally, I would appreciate it if you could provide me with the calculations.

Thank you,
B. Bharathi
Chennai

PF is calculated on basic at 12%. ESI is on gross salary at 1.75% of the employee's share and 4.75% of the employer's share. PT is calculated on gross salary based on limits. TDS is calculated on gross salary with some standard deductions like PF, ESI, PT, medical allowance, and HRA.

Up to One Lakh ten Thousand @ 0%
110000 to 150000 @ 10%
150000 to 250000 @ 20%
250000 and above @ 30%
On Tax @ 3%, education is additional.

Basic 50%
HRA 20%
Medical 10%
Education 1%
Conveyance 6%
Misc. (13% - PF + ESIC)