Confused About PF and ESI Deductions? Let's Discuss Monthly vs. Daily Calculations

Hi, I am working in an outsourcing company as a recruiter. Is PF deducted based on a monthly basis or working days? I noticed discrepancies in the PF and ESI calculation sheet as different amounts are being deducted even though the salary levels are the same. Can anyone help me with this?

Thanks and regards,
Ramesh

PF and ESI are deducted on PF on Basic and ESIC on Gross wages paid to employees on a daily basis or monthly basis. However, the submission of returns and deposits of PF and ESIC contributions is statutorily required on a monthly basis based on the total wages/salary sheet paid for the month. It doesn't matter if the salary levels are the same or different.

Regards,
Shaukat

Please let me know if an employee is applying for PF withdrawal after three months of resignation but has not completed ten years of duration with EPF. In that case, will he receive his full amount, which includes Employer (12%) and Employee (12%) contributions, or will he only get Employer (3.67%) and Employee (12%) contributions?

Regards,
Ramesh D

If an employee leaves his job before completing 10 years of service, he is eligible to get the full accumulated PF withdrawal, which includes the employer's share as well. However, after 10 years, he will receive a pension certificate from EPFO for the employer's contribution of 8.33% towards the pension fund. After the age of 50 years, he becomes eligible for a pension from EPFO.

Thanks and regards,
Shaukat

Ramesh, the very first thing is that you need to go through the rules of deduction of ESIC & EPF if you are not well familiar with it.

Secondly, there are numerous sample sheets and materials available which you can use for your practice and to understand the calculation. For that, I request you to please use the "research" option to find out the same. You can also see many related posts on the right sidebar of our CiteHR page under "Similar Post" which will automatically bring you the details, please go through it once.

Thirdly, please go to the links posted below:
- https://www.citehr.com/104521-esi-pf...cel-sheet.html
- https://www.citehr.com/104428-pf-esi...alculator.html
- https://www.citehr.com/70854-pf-pt-esi-calculation.html
- https://www.citehr.com/94146-pf-esi-...culations.html

Dear Arora, can you clarify the below doubt?

Arrears and Deductions

1) What are arrears? How are PF & ESI deductions calculated on arrears wages?

Regards,
Ram