How To Calculate The Pf,psi,tds And On What Percentage For The Employees?

How to calculate the pf,psi,tds and on what percentage for the employees?

Hi shruthi
PF is calculated on the basic salary ie 12% from the employee.
TDS Basic tax is 30%.
Surcharge charge 10% on Basic tax.
Education Cess 3% on 33%.
Total 33.99%.
INCOME TAX SLAB
Upto Rs 160000 Nil
160000---3L-10%
3L----5L-20%
5L and above 30%
Add 3% Education Cess on it.

thanks for your rpl and i also want to know about esi calculation and its percentage?And what calculation will come under salary slip which hr will do for his new employee iwant to do that please inform me how to do and prepare the salary break up which includes pf,esi,tds?

You may check this payroll resources to get better understanding on ESI, PF, PT, TDS.

Hi,
ESIC is deducted from the employees salary @ 1.75% of gross salary..and the employer share is 4.75%.....PF is 12% of basic....TDS comes if the slab falls under the tax deduction slab....PT is applicable as per the slab of the state..which state data do u require?..Hope this will help u....
Nisha

Hi Shreekumar.j,
the link u mentioned was a very informative one....
want to know one thing, is there a particular % which should be taken as basic..for eg: if gross is 6000, min how much proportion shud b taken as basic??
Nisha

Define Organisation Development and briefly describe the historical development of the theory of Organisation Development?

Dear
"If gross is X, how much proportion should be taken as Basic pay?" type of question has been flooding this forum. Please search CiteHR for answer to your query.
To go to the root of the problem, such situation is arising because HR these days, esp. in 'baniya/lalaji" companies, fix the Gross salary first.
Actually, it is (and should be) the other way round. Basic pay (by its very nature, indicated by its name) should be fixed first; since all other calculations including perks emanate from it, one just need to total the various components to arrive at the Gross salary.
However, the practice prevailing, initiated by half-baked HRs, is to arrive at the Gross Salary first and then to work backwards to "guess-estimate" the Basic Pay. A despisable, despicable, non-standard, ad-hoc, un-professional, arbitrary way of dealing with compensation issues.
It is a sure-shot indicator of the type of company it is.
Good companies seldom indulge in such practices.
Warm regards.

Hi
as per my knowledge
PF deducted from basic salary(50% of gross salary) and its deduct 12% from employee side and 13.61% from employer side.
ESIC deduct 1.75% from employee side and 4.75% from employer side and it deducted from gross salary.
Note: ** It is to be noted that where the Basic salary of the employee exceeds Rs. 6,500/- per month, the minimum contribution payable by the employer and employee will be limited to the amount payable on Rs. 6,500/- only
For ESIC Every employee drawing gross salary up to Rs. 10,000/- per month.above 10k ESIC is not deducted
if gross salary is above 20,000 then we have to deduct TDS and as per govt rate it is 10.3%.

Dear Sonali

Thanks for asking - I appreciate your curiousity and your desire to learn.

I have already answered it on a number of threads. If you can take the trouble of searching CiteHR, you"ll find it. Else, send me a private message.

Suffice to point out here briefly :

Every good organization has a salary structure and compensation model; (rather than having an ad-hoc system); wherein new employees are fitted - based on their qualification, experience and the benefits that they bring to the organization. New entrants are to be offered compensation which is in tune with the industry norms as well as it does not offset the equilibrium within the organization.

The salary structure is based on grades (or bands) which are created on the basis of job responsibilities and span of control.

Each grade comprises of a series of Basic pay separated by a fixed (or increasingly varying in ascending order) amount called increment.

Other benefits, emanate from the Basic pay and the Grade.

To illustrate the latter, for example, car allowance is given after a certain grade, prior to which there can be two-wheeler allowance or a fixed conveyance allowance.

Hope, it has given you some ideas on Compensation and Benefits Management, which in itself is a specialized field; and you must have come across job advertisements seeking Experts/Specialists in this field as it is a major tool for employee retention.

Warm regards.