Confused About ESIC Contributions? Let's Clarify the Exact Calculation Process!

Understanding ESIC Contributions

I want to know the exact employee and employer contributions in ESIC. For example, if the salary is Rs 9104, what will be the employee contribution? (1.75% of 9104) = 159.32. So, what should we consider... 159 or 160? The employer contribution is (4.75% of 9104) = 432.44. Should we consider 432 or 433? The total contribution is (6.5% of 9104) = 591.76. Should we consider 591 or 592?

Please reply, and how... What is the exact formula for calculating the correct amount? We are facing difficulties due to ESIC online challan generation. Please assist.

Regards,
Mamta Agrawal

Each contribution shall be rounded to the next rupee, irrespective of whether it falls below 50 paise or not.

Regards,
Madhu.T.K

You are right, sir. However, when I tried to calculate the employer contribution online, the calculation was incorrect according to your instructions. It appears that it calculates using a method that considers amounts below 50 or above, which seems to be inaccurate.

We are calculating in a similar manner as mentioned by Bhardwaj below, but after the data is put online, the contribution amount differs as per our Excel calculation and the online calculation by the system. Can anyone help as to how the system calculates the amount? This is creating issues for us to reconcile. Please help.

We are calculating in a similar manner as mentioned by Bhardwaj below, but after the data is put online, the contribution amount differs from our Excel calculation and the online calculation by the system. Can anyone help with how the system calculates the amount? This is creating issues for us to reconcile. Please help.

You are right, I also faced the same problem. I have even generated a challan, and now I want to delete it. However, they are asking for approval by the ESIC Regional Head, then they will do this.

You are all correct, but you may notice that when generating the system-generated sheet, the 4.75% ESI Calculation doesn't round up to the next number, causing a difference. It only rounds up in the final amount.

Any suggestions or comments would be greatly appreciated.

Regards,
Dhaneswar