Confused about calculating the number of days for EPF/ESIC - will include all Sundays?

Consider only those days for which you are paying wages including paid holidays,
Varghese Mathew

dear preethi,
it is so easy, see try to mention the date of joining of the employee (if he/she is newly joined) and if the employee is existing employee calculate on the basis of the leaves provided to him ok.
be specific and clear,

There are Two Popular method in india for calculating salary :

1) Total Month Days (with sunday) : means if salary is 3000 PM then per day salary would be 3000/30 (month days) = 100 rs per day.

now 15 is present. we should cover till last day present sundays means we have to add 2 or 3 sunday .

Present = 15 , Sunday = 2 , total days = 17 x 100 = 1700 rs.

In this method some rules also work that if somebody is absent on saturday and monday then that sunday will not include. it is not practicle to check every body sunday which it concern big quantity employee.

2) Total days (without sunday) method : I prefer this. Labour dept,esic,pf,leave encashment every dept is also satisfy with this method.

in this method if salary is 3000 pm and month total days is 26. then per day salary would be = 3000/26=Rs 115.38

and now total 15 days present then :

Present = 15

Any approved leave = 0

Any holiday = 0

total days = 15

Gross salary is : 15 x 115.38 = 1730.00

now if you compare this that as per method 1 salary is 1700. and as per method 2 salary is 1730. why ?

because of sunday..... if you count 3 sunday salary would be 1800.00.

every time, no employee would satisfy about sunday calculation.

thats why now a days big orgnization are adopting method 2.

Simple and best. And approved by Factory ACT also.

Hi,
Thanks to all of you for your replies.
Pawandarda: my company adopts second method that you have mentioned. Unfortunately here no holidays are given in a month. I am asking considering second method as calculation of salary....if a employee has worked for 13 days(excluding Sundays) in month what will be total no of days for PF calculation.
@Nirav there are no holidays for employees in the company
Regards
Preeti

Very simple
Only present days would be total days.
means 13 days.
is your salary is 5000 and month total days is : 26 then
5000/26 = 192.30 is per day salary
and gross salary would be : 13 x 192.30 = 2450.00
and cut the pf on it's basic salary.

Dear Preeti,
if your company adopted 2mathod then calculate PF ESI on 13days salary.
For Ex Total Salary 5000
Per day Salary 192.30
No of Working days 13
Total Salary 13*192.30= 2450
12% PF on 2450= 2450*12/100
ESI 1.75% on 2450= 2450*1.75/100

no. pf can deduct on basic salary.
not on 2450.00
like if u have 60% of gross is basic as per your decided salary structure the pf would be :
2450*60%=1470.00
1470*12% pf rate=176.40 is pf amount.

Dear Pawandra,
if basic is 1470 then rest of amount what would be?????????????????????????????/////////////

Dear Mr. Gandhi,
Do you have any knowledge about salary structure,Basic and gross.
If you have, you don't need to ask.
pf deducts on basic salary.
esi deducts on gross salary thats it.

Dear pawandarda,
as per the component of salary i am explaining you how to bifurcate salary.
Total Salary 5000
Basic 40% on 5000 i.e. 2000
HRA 1000
Conv 800
Medical 1200
Total 5000
PF 12% on basic 240
1.75%ESI on gross salary 87.5