PF AND ESI Calculation

Ramesh Kumar.S.N.
Dear All,
Please any one let me know the applicability of PF and ESI on salary in tamil nadu. our ctc components are Basic, HRA , Special Allowance, Conveyance Allowance and Medical Allowance. I exclude the CA , MA and HRA while calculating PF and ESI (Basic wages).. Is this corrct ?
In the recent PF inspection we found that Conveyance Allowance and Medical Allowance were also part of PF Basic wages.
Please share the updates on this clearly....
Harsh Kumar Mehta
1. Sir,all allowances viz.-HRA, special allowance, conveyance allowance and medical allowance, if paid monthly in salary are part of "wages" so far as ESI Act, 1948 is concerned and contribution is payable on such components of wages.
2. For further details you can see the definition of "wages" in above Act.
neel.m
PF deduct From Basic Amount
and
ESIC deduct on Gross income
PF. = 12% on basic+da, Employee = 12% on basic+da, EDLI = 0.5%
admin charges: 1.10% towards provident fund and for EDLI =0.01%
ESI: = 4.75% and Employee = 1.75%
Ramesh Kumar.S.N.
Hi Aneel,
I used to follow the same as calculating 12% on Basic since we have no DA. But in the recent inspection the Inspector told it should be calculated from Basic,Special Allowance and Conveyance Allowance
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