Struggling to Find ESI and PF Deduction Details? Let's Discuss and Share Insights

Dear Learned Friends, kindly post components forming part of ESI and PF to take into account while deducting from the salary. Please explain in detail in Excel format. The same query was explained in this forum in detail very recently, but I am unable to locate the same.

With Regards,
C. Renuka

PF and ESI Deductions

The PF deduction should be from the Basic + DA salary, while the ESI deduction should be on the Gross Salary. For salaries over and above ₹15,000 Gross Salary, ESI is not applicable.

Regards,
P. Xavier Raj

Kindly help me out with the definition of wages as per the ESI Act and which allowances or payments made to employees should be considered when deducting ESI. Specifically, should canteen expenses borne by the employer be included in the wages or not?

With Regards,
C. Renuka

Except for the washing allowance (if providing a uniform), all other monthly components are eligible for ESI deduction. If you paid the salary in account of canteen expenses, it will be eligible; otherwise, it is not eligible for deduction from the salary.

Regards,
P. Xavier Raj

We have spent around Rs. 5 lakhs for the canteen to provide meals to the contract laborers and Rs. 10 lakhs for providing boarding for them. Are these two expenses, which were not given as cash directly to the contract employees, to be covered under the wages for the deduction under ESI? I am expecting a detailed reply.

With Regards,
C. Renuka