PF And ESI Deduction

dear seniors please help me i am a fresher recently join a company as HR executive I want to know how PF and ESI calculation should be done and about gross salary . please help me out.
thanks
Dolly singh

Dear Dolly singh,
PF should be calculated on actual Basic + DA salary.
ESI should be calculated for Actual Gross Salary.
For PF, it is deducted 12% on both employee and employer share.
For ESI, it is deducted for 1.75% from employee and 4.75% from employer side.
PF will be applicable for all employee but if any person is getting more than Rs. 6500/- than you can pay Rs.780/- for both employer and employee( 12% of 6500 is 780). some company pays 12% of basic salary.
ESI is applicable only for employee having gross salary less than 15000.

Dear Shenbagarajan
As you have mentioned Rs. 780 contribution both Emp & EMPR contribution, Rs.780 is only employee contribution employer contribution should be added.
While we are guiding juniors we should make them understand 12% from Employee and 13.61% from Employer on (Basic+DA).
12% Employee + 12 % Employer + 0.50% (EDLI(Employee despoit linked Insurance) + 1.10% Admin Charges and 0.01% Admin Charges on EDLI.
Regards
Karthik

Dear Dolly Singh
PF is calculated on the Basic amount and were as the ESI is calculated on the Gross Salary
ESI Employee Cont - 1.75%
ESI Employeer Cont - 4.75%
Total ESI Cont - 6.5%
PF Employee Cont - 12%
PF Employeer cont - 13.61%
Total Cont - 25.61
With Regards
M.V.Krishna Reddy

Dear Karthik,
Here we are educating the employee on basics to understand how the deductions are made.
Even in payslip you show the 12% contribution by the employer. Moreover if you are educating the junior that 13.67% employer share then the same will be comunicated to the employee. the employee will add his 12% and 13.61% has been added to his PF contribution.
When PF and ESI is discussed it is wise to communicate the actual amount been deducted from both side.
EDLI and Admin charges will be taken into account while remitting the challan through bank or online which will be known by the juniors when they have a hands on experience.

thank you all... but still i have some problem can any body will guide that how on excel sheet salary slip should be made and how deduction should be done
thank
Dolly singh

Dear Dolly,
The salary slip format will be different for different companies. Generally it will have different components like Earnings, deductions,pay and disbursement details, ESI/PF no.,no of working days, emp/empr address....So according to your requirement you can prepare by including different components...