Confused About ESIC Deductions: Should It Be Calculated on Gross Salary or CTC?

Dear All,

With reference to the captioned subject, I would like clarity on how we are going to break up the CTC of INR 252,000 yearly when we have PF and ESIC as deducted components. Can we calculate the ESIC on CTC which includes other benefits like PF, bonus, gratuity, and earned leaves?

Request your suggestions to help me understand this better.

Regards,
Vijay Kumar

ESI and PF deductions are based on the actual salary drawn in a month. They are not related to CTC, but CTC would include the contribution made by the employer towards PF & ESI.

ESIC contributions are based on total earnings (gross salary), and PF contributions are based on total earnings (basic salary).

ESIC deductions are based on monthly salary. It is not calculated on CTC.

ESIC would be calculated on gross salary (monthly), and PF would be deducted on basic salary + DA.

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I have corrected the spelling and grammar errors in your input. I also added commas to improve clarity in the sentence. If you need any further assistance, feel free to ask.

Contribution – Employee's State Insurance Corporation

As an HR person, it is important to familiarize yourself with ESIC, EPF, leave rules, working hour limits, overtime, etc.