Struggling with Wage Bifurcation for Skilled Workers: Am I Calculating EPF and ESI Correctly?

Dear Sirs,

I am being asked to bifurcate the Consolidated Amount of Wage Rs. 4000/- for a Skilled worker (daily Min wage is Rs. 116/-) and to put it in a tender for outsourcing the service by giving the details of calculation of the EPF, ESI deductions from the Employee Salary (Rs. 4000/- Consolidated) and Employer side also. I have calculated as follows: Per Day Min wage - Rs. 116/-, wage per 26 working days - Rs. 116 x 26 = Rs. 3016/- (Basic), Rs. 4000/- Rs. 3016 = Rs. 984/- Other Allowances. EPF @ 12% of Rs. 3016 and ESI also on that. Am I correct in my calculation or not? What will be the rule/practices for bifurcation of the Rest Rs. 984/- (Other allowances) into different aspects like DA/HRA, etc.? Please guide me in this regard.

Pragatika Mishra

Hello Mishra,

You can go for the below-mentioned Salary Breakup for Rs. 4000 Gross Salary:

Basic+DA = 2920 (Minimum Basic)
HRA = 1080 (50% of Basic+DA)
PF deduction [12% on Basic] = 12% * 2920 = Rs. 350
ESI deduction [1.75% on Gross] = 1.75% * 4000 = Rs. 70
Net Payable Salary = 4000 - (350 + 70) = Rs. 3580

Regards,
Latha

My question is: Give the bifurcation of the Gross Salary if the Gross Salary is 37,000 PM. Calculate in both Limited PF and Unlimited PF Contribution? Please reply.