About PF, PT & IT

Dear All,
I am Grishma working as an HR with a private limited IT company having strenght of around 17 employee. I don't have experiance in HR activities. I need to prepare salary for the all employee so please any one let me know what would be the deduction from which salary. Basic salary of my employees ranges between 6500 to 15000. Kindly let me know what would i deduct and in what proportion and from which salary? I am so confused. from internet i am getting a lot stuff and which is varies from one other which makes me more confuse.:confused::confused::confused:
Please help.:x
Thanks in anticipation,
Grishma
9096120202
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Donot get Panic.
Do all the calculation on an excel sheet.
Start with calculating the attandace of the employees for the month
First of all enter the names of all the employees in coloum
and days in row and mark their attandance for every day. Now in the end i.e after 30th of the month put a formula to calculate the no. of days present of every employee.
Now depending upon the number of days they have attended the office calculate the basic.(you have the salary details right)
Now upon basic calculate all the other component mentioned in the salary breakup. Like HRA,CCA, MEDICAL ETC. see this entirly depends on your company policy that how much % of each component have of basic.Say suppose HRA may be 40% of basic.You will get the net salary.
Now deduct 1) PF (12% employer and employee), 2) PT depending upon the slabs
3) ESIC if salary is less 10,000/- 4) Deduction of any loan if taken.
I think this will help.
Any query plz revert back.
Reagrds
Namrata

Hi Grishma,
As you are new in this field, you have done a good job by joining this site as you would get a lot of inputs here. You can get lot of help from members of this community whenever required.
You should calculate Basic first. Rest all other components of salary would depend on that (% of Basic) or could be a fixed component.
In case your company plans to function with the current strength ( No. of employees), then, you need not deduct PF.
As per the Act, if there are 20 or more employees working or have worked in a year, then the EPF Act applies.
You can make deductions for Income Tax, as per the tax slab divided equally for the remaining period of the financial year.
You will have to take care of few laws especially governing wages / salary. You should pay minimum wages as per the minimum wages Act.
Regards,
Santosh
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Hi,
Already well explained by dear friends..
prepare an excel Sheet, enter name of employee, designation, date of joining.
Then write down the salary heads on actual days.
Merge the two rows and in below write the actual salary heads on completion of a month. In above row just formulate it like after putting the number of days it should calculate all the heads accordingly.
After calculation of payment part, there comes the deduction one.
Deduction part attracts PF, ESI, Professional Tax if applicable, Mobile deduction, Loan or advance deduction and Other deduction.
As you are having only 17 employees then you shall be exempted from PF.
But if 10 employees are getting less than 10,000/- gross salary then it shall be applicable under ESIC, otherwise its exempted.
Regards,
Amit Seth.

What we follow in our company is as follows
Gross Salary = Rs. 5000
Basic = 30% of gross Salary (ie Rs. 1500)
PF Deduction = 12% of Basic (ie Rs. 180)

Hi,
Thanks a lot i am very happy that i got so many replies.
I will do it accordingly and will share my success with you once i will pay them. But still i have one doubt is the Provident fund we are deductiong 12% right but if i am giving salary - Basic to the employee between 6500 to 10000 than also i need to deduct PF.
Again thanks a lot for your great help and time.
Grishma
9096120202

Ddear Grish,
Greetings from visu..
For people like you, we provide a special week end training programme to equip yourself with HR EXECUTIVE TRAINING Programme covering pay structure, and compilation and upkeeping of statutory records, ESI PF PT eTDS Tax planning.
More so, all those who join will get free TAX TOOL CALCULATOR (a worthy calci for the HR Executive)
Please be with us - and looking forward at next batch
HR EXECUTIVE TRAINING
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