Salary calculation - they are calculating PF on gross with a ceiling limit of Rs 15,000

HR GRADUATE
Hi All, In my company they are calculating PF on gross with a ceiling limit of Rs 15,000. They were asking me to do in the below format..but i am not able to understand and they to don't have complete knowledge as they are blindly following of their consultant. I tried to reach him but he is not responding. The below is the break up:
Basci : 5206
HRA: 2082
Conveyance All: 1600
Other Allowances: 4127
Gross: 13015
PF Employer: 1562(On gross)
ESI Employer: 423
PT: 150
CTC: 15000
Take Home salary is Rs 10878
Any one can explain me in detail of the above structure?
Thanks & Regards
fc.vadodara@nidrahotels.com
To the best of my understanding the Basic is 40% of your Gross Amount, 40% of Basic is your HRA, Conveyance allowance is Rs. 1600/- which is as per Income Tax Exemption Limit and the balance is taken as Other Allowances.
The PF contribution of employer is wrongly calculated as 12% on Gross Salary on the contrary it should be 12% on Gross Salary less HRA, kindly check the PF Amendment of April 2019.
Even the ESI Contribution of employer is wrongly calculated its 3.25% on gross salary. Kindly check the recent amendment notice of ESIC w.e.f. July 01, 2019
nanu1953
There is no need to complicate salary structure at 15,000/- CTC level which is not taxable level. Considering minimum wage, recent verdict of Supreme Court etc. it may be a simple pay structure as follows:-
Basic - 11,850.00
HRA - 1,185.00 (10% OF Basic)
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Monthly gross - 13,035.00
Employer PF - 1,541.00 ( 13% including Admin charge etc.)
Employer ESI 424.00( 3.25% from 01.07.2019)
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CTC 15,000.00
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PT (Professional Tax ) is not part of CTC as it is paid by employee. It is possible to maintain 10% HRA of Basic up to 15,000.00 as in minimum wages definition HRA is also included . Moreover, in some states of India ( WB , Maharashtra etc.) as per state act 5% minimum HRA is required to pay.
Above 15,000.00 Basic , the HRA can be tapered off ( Higher the Basic higher % of HRA) and also consider ITAX effective pockets at higher salary level.
Thanks & Regards,
S K Bandyopadhyay ( WB, Howrah)

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bhagwan-tolani
Dear Friend,
Greetings!!
First far most I wish to know the level of expertise of the person, whose salary has to be calculated, skilled, semi skilled or unskilled, after that basic salary will be decided.
Afterwards, the PF of employer how your company is calculating in trend, then only I can give me inputs.
Rgds
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