Comprehensive Guide to Salary Deductions and Employee Benefits Calculation

Hi,

My name is Pritam Khatri. I am working at Vaidika Ad as an HR Assistant. There are no legal deductions, meaning no PF, ESI, PT, or anything else. I want to know the percentage of deduction items and how they are calculated.

Thank you,
Pritam Khatri

Hi Friend,

If you want to know more about PF, ESI, etc., I have attached the Labour Laws designed by one of our CiteHR friends, Sandhya. I hope it will be useful to you.

Regards,
Saravana
Executive - HR

Hi,

PF is calculated on Basic at 12%. ESI is on Gross Salary at 1.75% of Employee share and 4.75% of Employer share. PT is calculated on Gross Salary based on limits.

TDS is calculated on Gross with some standard deductions like PF, ESI, PT, Medical Allowance, and HRA:

- Up to One Lakh ten Thousand @ 0%
- 110000 to 150000 @ 10%
- 150000 to 250000 @ 20%
- 250000 and Above @ 30%

On Tax, 3% education tax is additional.

Please find the Salary Matrix for your calculations.