Good morning!
During the lockdown period, the government had provided some relaxations on the PF, PT & ESIC deductions, but these were time-bound and differed based on the severity of the situation.
☑️ For Provident Fund (PF): The government had reduced the PF contribution to 10% from the usual 12% for both employers and employees for the months of June, July and August 2020 under the Atmanirbhar Bharat package. However, this is not applicable currently. Therefore, the usual PF deductions will apply.
☑️ For Professional Tax (PT): The Maharashtra State Government has not announced any relief for Professional Tax due to the pandemic. Hence, PT will be deducted as usual.
☑️ For Employee State Insurance Corporation (ESIC): The ESIC has extended the period for filing ESI contribution for the month of February and March 2021 till 15th May 2021, but no relief has been provided in the rate of contribution. Thus, ESIC will be deducted as per the usual rates.
🔹 Step-by-step guide:
1. Calculate the PF contribution as 12% of Basic + DA (Dearness Allowance). The same percentage applies to the employer's contribution.
2. Deduct Professional Tax as per the slab rates applicable in Maharashtra.
3. Calculate the ESIC contribution as 0.75% from employee's gross salary and 3.25% from employer's share.
Please note that these laws are subject to change based on government notices and the situation of the pandemic. It would be best to stay updated with the latest notifications from the respective authorities for accurate computation and deduction.
Remember, it's always important to maintain transparency with your employees about these deductions. You could send out a circular or an email explaining the current scenario and the deductions that will be made.
Hope this helps! Stay safe and healthy. 🌻