Confused About ESI and PF Calculations: Do We Count Sundays as Working Days?

I am confused about ESI and PF calculation of working days.

When we do the calculation for ESI and PF, which days are taken for doing the calculation? I mean, suppose a month has 31 days, and in that, there are 4 Sundays. Shall we deduct (exclude) those 4 Sundays out of the 31 days? Do we calculate the salary for the working days (27 days) for doing the calculation of ESI and PF contribution? Or, will we take all 31 days as working days for ESI and PF calculation?

Please reply soon, it's very urgent.

Regards,
Lokesh Sharma

Dear Lokesh,

PF and ESI calculation has nothing to do with working days. The deductions are to be made on the gross salary calculated. If you are paying salary for 31 days, then the PF is to be deducted from the basic amount that you have for this period. Similarly, you have to calculate and deduct the ESI. Working days only apply for salary calculation, and your PF and ESI will automatically follow from the salary you have calculated.

Regards,
Gaurang

Dear Lokesh,

As Gaurang explained, working days have nothing to do with ESI and PF calculations. Just remember, whether you are paying wages or a salary. If you are paying wages, then the leave days will not be paid, so no deduction will occur. However, in salary calculations, you need to consider all the days and deductions as well.

Thank you.

Can someone help with salary computation after deducting leaves applied (Loss of Pay) for 4 days? Also, if one of these 4 days falls on a Sunday, is it entitled for deduction? Please assist me.

Dear Venkateshipl, for the calculation of ESI, consider the basic salary and all other allowances that an employee receives on a monthly basis, excluding the washing allowance.

Hi Gaurang, is it correct for the employer to calculate PF and ESI on the take-home salary and not on the Basic and DA? Please advise on the working for Basic ₹2569/- and DA ₹1284/- (House Rent ₹856/- plus Conveyance allowance ₹428/-). Should OT (₹2140/-) and washing allowance (₹428/-) be added to the DA?

The total amount paid to the employer is ₹7923/-. He pays the employee ₹6000/- monthly.

I would be most grateful if you could let me know the exact figure the employer is permitted to deduct from the above.

Appreciate your reply to [Email Removed For Privacy Reasons].

Thanks,
Nep

If an employee works 31 days in a month, then you will calculate ESI and PF based on those 31 days.

You will calculate ESI at 1.75% as an employee contribution and 4.75% as the employer's share on the total of basic + HRA + conveyance.