Understanding PF and ESI Deductions: Should They Be Based on Basic or Total Salary?

Clarification on PF and ESI Deductions

I am the HR representative of an IT company. Starting this month, we have implemented deductions for PF and ESI. I would like to clarify whether these deductions should be based on the basic salary or the total salary.

Thanks

You have started deducting or are planning to go for it? Have you registered your company under the ESIC and EPF Act? If yes, you must know the rules of deduction. If you are new to this and have little knowledge about it, and have been assigned the job, you should visit their official websites to learn more: https://www.esic.nic.in/ and http://www.epfindia.com/.

Do you have a proper HR setup in your company? Is this a new IT firm/company or a small business firm?