Dear Kumaresan, I think your query is regarding the contribution.
Regarding ESI Contributions
The coverage is up to a total salary of Rs. 15,000. The contribution is 1.75% from the employee and 4.75% from the employer.
EPF Contributions
The ceiling limit on salary (generally basic + DA) is Rs. 6,500. For new employees, PF is mandatory if their salary is within the limit. However, for those who are already enrolled in PF, they have to continue even if their salary exceeds the ceiling limit. The legal obligation is for contribution up to the ceiling limit. However, it is optional to contribute beyond the ceiling limit and to enroll new employees in EPF in case their salary exceeds the ceiling limit.
Contributions to PF
- Employee: 12%
- Employer: 12% (EPS + PF)
Out of the employer's contribution, 8.33% subject to a ceiling of Rs. 541 per month will go to EPS, and the rest of the amount to PF.
Administration Charges
1.1% (by employer)
Contribution to EDLI
This is also a part of EPF: 0.5% by the employer subject to a salary ceiling of Rs. 6,500.
Administration Charges: 0.01% subject to a salary ceiling of Rs. 6,500 (by employer).
If the PF & EDLI are run by exempted Trust/Agencies, the above administration charges are not applicable. Instead, inspection charges of 0.18% and 0.005% will be charged, respectively.
Regards, Abbas.P.S