Struggling with PF and ESI Calculations? How Do You Overcome This Interview Hurdle?

As I am attending interviews, I have been rejected because I don't know how to calculate PF and ESI. Please, can anyone suggest how to calculate PF and ESI?

Hi Megha, there are many discussions regarding statutory aspects like ESI, PF, and PT. Apart from that, you should learn about the Shops and Commercial Establishments Act. Please search for individual discussions in this forum. If you have any more doubts, feel free to share them here.

Thank you.

Please find the details of ESI & PF contribution.

PF Contribution

- **PF Contribution of Employee:** 12% of Basic pay
- **PF Contribution of Employer:** 12% of Basic pay

The contribution goes in two parts:
- 8.33% goes to Pension Account
- 3.67% goes to PF Contribution Account

Additionally, there are 1.61% towards Admin Charges as follows:
- 1.1% of Basic – PF Admin. Charges
- 0.5% of Basic – EDLI Charges
- 0.01% of Basic – EDLI Admin. Charges

Employee ESI Contribution

- 1.75% of Monthly Salary Paid (Max Salary Limit for ESI deduction is Rs.6500 p.m. and above Rs.6500 p.m., no ESI deduction to be made from the employee's salary).

Employer ESI Contribution

- 4.75% of Monthly Salary Paid (Max Salary Limit for ESI deduction is Rs.6500 p.m. and above Rs.6500 p.m., no ESI deduction to be made from the employee's salary).

Although most of the aspects have already been explained by sunandalawania, there are other criteria that can also affect this calculation process. It is better to follow the suggestions provided by Jeevarathnam, and any doubts can be further discussed here. Keep researching and expanding your knowledge because knowledge brings confidence. Confident candidates are always rewarded with good opportunities. Best of luck.

Regards