Regardin Pf And Esi Caculation

Hai Friends,
I am in HR field I have a doubt regarding , ESI and PF caculations any body can clarify this doubt.
Thank you.
Have a Good day
Regards,
Mohamed

Hi Mohammad,
ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-
Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000*4.75% = 380 Rupees.
And the same is been applied in PF also that is it also been contributed from both Employee as well as employer. Both contribute 12% of Basic salary. The ceiling for basic is 6500/-. Means those who are getting more than 6500/- as basic can be a part of PF but the deduction would be only 12% of their basic.
While processing payroll the employer deduct the sum of ESI contribution and PF contribution from the gross total.
Hope now it wil be clear with you.
Regards,
Amit Seth.

hi,
Regarding PF you have to calculate as mentioned below:
Employee : 12% (maximum 6500)-compulsory
(Account No.1)
Employer : 8.33% (Maximum 541) - Family Pension Scheme
(Account No.10)
3.67% (maximum 239) - Employees Provident Fund
(Account No.1)
Administrative charges : 1.1% on total wages
(Account No.2)
EDLI(Employees Deposit Linked Insurance) - 0.5% on total wages(Account NO.21)
EDLI (Administrative Charges) - 0.01% on total wages
(Account No.22)
I hope you got clarified. if you have any queries you can mail me [Login to view]
regards,
vaitheeswaran s

EPF is payable over Basic + DA only.
ESIC is payable over gross salary exclulding washing allowance. Also all allowances given once in 3 months do not attract ESIC, as they are not considered as part of Salary.
ESIC declaration forms are to be submitted within 2 weeks of appointment and the returns are filed twice in a year.