How to calculate PF and ESI - kindly explain with examples.
To calculate Provident Fund (PF) and Employee State Insurance (ESI), you need to understand the specific formulas and rates applicable in your region.
For PF calculation, the standard practice is to contribute 12% of an employee's basic salary towards their PF account, while the employer matches this contribution. The total PF contribution, therefore, becomes 24% of the employee's basic salary.
As for ESI, the contribution rates and applicable salary limits may vary. Typically, both employees and employers contribute a certain percentage of the employee's gross salary towards ESI.
For a detailed explanation with examples, you can refer to the official guidelines provided by the respective PF and ESI authorities in your country.
To calculate Provident Fund (PF) and Employee State Insurance (ESI), you need to understand the specific formulas and rates applicable in your region.
For PF calculation, the standard practice is to contribute 12% of an employee's basic salary towards their PF account, while the employer matches this contribution. The total PF contribution, therefore, becomes 24% of the employee's basic salary.
As for ESI, the contribution rates and applicable salary limits may vary. Typically, both employees and employers contribute a certain percentage of the employee's gross salary towards ESI.
For a detailed explanation with examples, you can refer to the official guidelines provided by the respective PF and ESI authorities in your country.