Salary and Benefits Questions: How Do I Handle PF, ESI, and Gross Salary Calculations?

Salary and Benefits Queries

I have a few questions, please help me out with this:

1) If the salary is 30k in hand, what will be the gross salary and how do we calculate it?

2) If the salary is 30k and I don't want to contribute to PF, what should I do? What is required?

3) What is the maximum limit in PF that we can deduct if the salary goes up to 50k?

4) If the employee is already receiving ESI benefits, should the company also provide a mediclaim benefit to them? Or can the employee avail both benefits?

Appreciate the quick replies.

Regards,
Preeti

First, you need to decide the gross pay, and after all deductions, you will get the net pay. Without knowing the deductions, it is highly impossible to ascertain the net salary.

PF Declaration and Coverage

If any employee is joining the organization, ask them to fill out the PF Declaration Form 11. Check whether they are covered under EPF. If they are covered, you can't exempt them. If not covered under EPF in previous companies and if the basic salary is above 15,000/-, then you can exempt them.

If the basic salary is above 15,000/-, then you can restrict it to 15,000/- only. So, 12% on 15,000/- is Rs. 1,800/-.

ESI and Medical Policy

If any employee is covered under ESI, then there is no need for a medical policy. However, if the company is willing, they can avail of both benefits.

If you have any doubts, you can reach me.

Regards