How Do I Calculate PF & ESIC Deductions for Outsourced Employees? Seeking Guidance

Hi, I am Chandra Shekhar. I have one year and three months of experience in the HR & Admin Department. I recently joined a company that outsources security guards and labor to another company where I have to make some deductions.

Question on PF & ESIC Deductions

My question is, how can we calculate or deduct the PF & ESIC of employees and also specify the heads on which we deduct all these?

Thank you.

Warm regards,
Chandra Shekhar

Refer to the security company and the labor company that provide you with personnel. They are responsible for paying the PF and ESIC for their employees. Doing so could increase your costs for the same hire. However, please be advised that this is a requirement and complying is beneficial for all parties involved.

Regards,
SD

Dear all,

Employee Share

PF has been deducted at 12% of Basic Salary but should not exceed Rs. 780/-. ESI has been deducted at 1.75% of Gross Salary but is not applicable for those who are earning more than Rs. 15,000 per month.

My statement may not be clear. To clarify, I need to understand the basis on which you have engaged manpower and are making payments. You can obtain the exact information by showing me your Work Order.

Regards