Understanding ESI Deductions and PF Contributions in a Domestic BPO Setting

Sir, this is Riyas from Chennai, and I'm working for a domestic BPO. I am receiving a salary of around 8808, and they are deducting Rs. 400 from my salary. Please, can anyone provide an answer?

Dear Riyas,

Could you please provide details of your full salary including basic, DA, and all allowances? They will deduct only Rs. 154.14 for ESI, and the remaining amount will be allocated to your PF.

Regards,
Venkat

Sir,

Good afternoon, sir. This is Riyas, and I have been working for a domestic BPO, sir. I know that 1.75% of my salary will be deducted.

Yesterday, I received an appraisal form from my company's HR. They have mentioned my basic salary, rent allowance, shift allowance, bonus, and my salary of 8887. Additionally, they specified deductions for ESI (391) and PF (266). When I inquired with HR about these deductions, they explained that the 391 Rs for ESI is provided by the company on my behalf.

My concern is why the company mentions this amount in the appraisal form if they are already contributing to ESI. Furthermore, in my payslip, they deducted 185 Rs, which confuses me. I would appreciate it if you could clarify this for me.

Thank you for your attention to this matter.

Regards,
Riyas

Dear,

In your organization, does not follow proper HR policy, I think they are collecting both contributions. Normally, every concern has PF > ESI, but in your case, PF < ESI.

PF (Basic+DA) ------- 2217

ESI (Gross) -------- 185

This is your real contribution. The rest of them are company tricks.

Dear Riyasjmr,

If the statutory acts apply to your organization, then the rule states that a total of 6.5% (1.75% to be deducted from the employee and the remaining 4.75% to be contributed by the employer) of an employee's gross salary (provided the gross salary is <15000) is to be deposited by the employer in the ESIC office of that region. So, if your salary (gross) is Rs. 8887/-, then you need to contribute @1.75%, which is around Rs. 156, and only this amount is to be deducted from your gross salary regarding ESI deduction. The rest 4.75% of the gross is needed to be contributed by the company itself. They cannot deduct Rs. 391 because if your gross is around Rs. 22343, then only @1.75% it comes to Rs. 391. If your salary is above Rs. 15000, you will not be covered under the ESI Act. Please ask your HR department to provide a clear idea on this.

Similarly, you need to contribute 12% of your Basic+D.A (which is to be deducted from your gross) for PF, and a similar amount is to be contributed by the employer. Again, going by your post, it can be understood that if the company deducts Rs. 266, then your Basic + D.A is around Rs. 2216. Here, do check with your HR regarding the minimum wages of your region for a skilled worker, as PF is to be deducted from minimum wages.

Regards,

Ramya Ranjan

This is Riyas. Sir Venkateswaran, if you don't mind, can I have your mobile number, sir?

Sir,

Today, I went to my HR and asked about my ESI account number. They have provided me with my ESI account number, and I checked my account details to see how much I am contributing to the ESI office. For October 2013, I was present for 25 days, and my salary in the ESI office is Rs. 6165, with Rs. 108 for October. In November 2013, my salary was Rs. 5521, with Rs. 97 for ESI. In December, I worked for 26 days, and my salary was Rs. 6087, with Rs. 107 for ESI as mentioned in my ESI account.

I joined in September 2013, and the company deducted Rs. 157 for ESI, but there was no contribution to ESI from me in September. My company deducted Rs. 157 from my salary. What can I do next?

Thank you.

I have the PF account number. How can I check my PF balance online?

Thank you.