Sub: Deduction of P.F. and ESI
The above two acts are Central Acts. Therefore, there are no specific Andhra Pradesh Rules and Regulations. You have to deduct the P.F. and ESI contributions from employees as follows:
- If an employee's wage (Basic + DA) is Rs. 4000 PM, the P.F. deduction is 12% (4000 * 12%) = Rs. 480. The ceiling wage for P.F. deduction is Rs. 6500 (for P.F. deduction only Wage + DA to be taken).
- If an employee's total wage is Rs. 4000, the ESI deduction is 1.75% = 4000 * 1.75% = Rs. 76. For ESI deduction, the total wage (except conveyance) should be taken into account. The ceiling wage is Rs. 15000 PM.
Regards,
D. Gurumurthy
LL.HR & IR Consultant.