Calculating Of Salary So In-hand Remains Same After New PF/ESI?

nikhilpatki
Presently we don\'t have P.F Tax, EPF, ESI ( what is actually called Payroll/ Salary Breakup ). But we are expecting to avail these facilties from next financial year. So how to calculate the salary break up as our current salary ( in hand with no deductions ) should remain same.
Nethravathi B
how to calculate the salary break up as per my current salary Rs. 22000 (CTC), i want to know the PF 12% break ups
Sriya Halder
Dear Nikhil Patki,
PF is calculated on Basic salary. 12% of employees basic salary is being contributed towards EPF.
ESIC is calculated on Gross salary. 1.75% of employees Gross salary is being contributed towards ESIC.
PT is calculated statewise.
Suggestion:-
1. You can fridge the current salary which is in-hand salary. And start adding break-downs like HRA, Special Allowance, Travel Allowance etc as per convenience of the company.
2. Or else you can break-down the whole salary according to various bifurcation which will ultimately affect your in-hand salary.
Pan Singh Dangwal
Dear Nikhil,
The deduction of PF-ESI is subject to registration with the dept. If the No. of employees in your organization has reached to the minimum no., as specified in the acts, than you have to apply for the registrations immediately and deductions should be made accordingly.
However, if you are doing on voluntary basis than it can be done as per your preferences. Before deductions started, you have to define the salary structure in such way to maximize in hand salary with lower statutory cost to company and lower Income Tax deduction (TDS). There are different criteria (depend upon the CTC level, no. of empl., Industry etc.) to define the salary structure as per requirement.
However, if you are legally not bound for the registration, than the gross salary & net salary (in hand) will be same.
Fellow members can put more light on the matter.
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