Need Info Abt Salary Calculations..

DragonBaki
Hi.,
Can anyone please explain about salary calculation procedure. Additionally, I need some explanation about the following two cases.
1. In our organization, we are maintaining that if employee has more than 10000 as gross, there is no ESI amount will be deducted. Suppose, an employee put leave for 10 days in a month, then we can calculate only 20 days for his salary. In that case, they will have less than 10000 as gross. Now, whether it is applicable for deducting ESI for that month or not..?
2. For the above same case, Is Professional Tax will be changed..? Why because, Professional Tax has been deducted based on some range of monthly gross salary of an employee. If an employee put 20 days leave, then the gross will automatically goes down and there may be some changes exists in deducting PT..?
Can anyone please explain about this. Waiting for your valuable suggestions..
Thanks,
Baki.
Ramnaresh_20
ESI will only be deducted if the employee is getting less than 15000 per month. If employee is absent then unlike PT ESI will not be deducted as the gross is more than 15000.
Ramnaresh_20
What I mean to say was, let us take an example.....If an employee is making 20,000 per month he is not eligible for ESI. Even if he is absent from work for 15 days ESI will not be deducted from his salary but his PT will be reduced as Tax is deducted as pay as you go basis not ESI.
rajeshkannan
Dear baki
based on esi act, deduction will be on gross.
The slap is rs 15000 more than rs 15000 no need to deduct.
The esi will be consider the fixed gross not a earned gross.
Eg: A s salary is rs 15000 he is eligible for esi.
B:s salary is rs 16000 he is not eligible.
Is a's earned salary is rs 10000 on the particular month, because of absent then also esi should deduct.
Pt is also like that.
For pt 6 months gross is consider. Suppose 6 months gross is rs 75000 you have to deduct some amount which is mentioned by pt department . This pt also will be deducted on earned gross only.
Regards
m.rajesh
manager-hr
mrpl
psvjgupta@gmail.com
Dear Rajesh ,
Clarify me one thing PT is caluculated based on 6 months gross basis or
Monthly Gross Basis,
Ex: if an employee regular gross salary is 6000/- then PT would be deducted some 60/- in some other month he drawn 12000/- due to incentives etc then he is paying 150/-. so PT is on monthly Gross.
suggest me.
Regards:
Gupta.
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