ESI-PF Allowance Deduction

phhready
hii,
i want to know how which allowances we can not deduct ESIC or which allowances should be deductable. same about PF. also i want to know whether Medical allowance deduct ESI or not?
sidman05
Dear Freind,
The ESIC is deducted on entire gross salary. Apart from Washing Allowance and Fatigue Allowance all allowance attract ESI. Apart from that every monthly payment such as incentive or other payement attract ESI.
For P.F it is calculate on the Baisc of the salary.
for further clarifiaction go through PF & ESI Act
Regards,
SIDMAN
phhready
DEAR SIR,
Thanx for the information, can u tell me ESI dedut from other payments e.g. Bonus, Incentive, Monthly Rewards. Over time etc???????????
I also want to know that if a person earning gross salary Rs. 14000/- and if he earn overtime Rs. 1500, so what the consequences, because ESI deduct form Overtime but gross-OT= more than 15000/- which means he is out of the ESIC limit?
siddharthmcm
Hi PHHREADY
Esic is deducted from entire monthly gross salary. Gross means(baisc+da+allowance+incentive+overtime). In your above case esic limit is counted on gross salary of person and for deduction gross+overtime is considered.
Hope you understood
Siddharth
phhready
Dear Professionals,
Component payable at the interval more that 02 month is exempted from the ESI liability. but what if a company pays Performance linked incentive in June and than in Sep. is it exempted from ESI. Suppose it is exempted but if the company pays in Nov too, than what?
shreekanth.pr
Dear Member,
For calculation of ESI Gross salary is taken into consideration ie., Basic+DA+All allowances+OT except conveyance allowance to the maximum of Rs.15,000/-. Employees contribution is 1.75% and employers contribution is 4.75%.
For calculation of PF 12% of Basic+DA+RA+cash value of food concessions to the maximum of Rs 6500/- is taken.
*employers contribution is 13.61% of the salary.
phhready
hiiii,
sorry my question was, Component payable at the interval more that 02 month is exempted from the ESI liability. but what if a company pays Performance linked incentive in June and than in Sep. is it exempted from ESI. Suppose it is exempted but if the company pays in Nov too, than what?
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