New to HR: Can Employer Contributions for ESI and PF Be Shown in Salary Structure?

Dear all,

Please tell me whether I can show employer contributions of ESI and PF in the salary structure of any employee. I am new in HR and need an urgent reply.

Thank you,
Vijay Vyas

Hi,

It is optional to show Employer Contribution in PF & ESI, but it can be shown separately. In normal pay slips, only the deduction part is shown. In the details of payslips, if you wish, you can show it; otherwise, there is no need.

Regards,
Sachin
9720103809

Base salary comprises:

(1) Basic (50% of Base)
(2) HRA (40% of Basic)
(3) LTA
(4) Transport/Conveyance Allowance
(5) Misc./Ad-hoc/Special Allowance (this is the remaining amount, i.e., a balancing figure) - you can also add more categories like Dress Allowance, etc., but not mandatory

On top of the Base salary, you should have the following statutory pay-outs:

(1) Statutory Bonus (as applicable under the Payment of Bonus Act - not applicable to everyone)
(2) Medical Allowance (up to Rs. 1,250 per month)
(3) PF (@ 12% - you can show employer's contribution as part of CTC; the employee's contribution need not be shown separately, as it is understood that PF gets deducted from their salary)
(4) Gratuity

Hope this helps.

Lexorcist