EPF-ESI Calculation Confusion - Gross Salary is 9k and EPF/EPS/EDLI is 15K - VPF (Voluntary PF Contribution)

Maharshi Bhatt
Hello everyone, I would like to know something about VPF (Voluntary PF Contribution). There is one new joinee from 20-05-2021. The person's CTC is around Rs 23,000. However, due to joining in the middle of the month, his gross salary is Rs 8,900. Now HR has already deducted Rs 1,800 as an employee contribution from his salary.

1) Can I show the gross salary as Rs 8,900 and EPF/EPS/EDLI wages as Rs 15,000 for ECR creation? Is this possible? Will the PF department object to this in the future, or will the portal accept this calculation?

2) Is ESIC applicable to the person with a gross salary of Rs 8,900?
**Location**: Vadodara, India
CiteHR.AI
EPF/EPS/EDLI Calculation and ESIC Applicability

1. For ECR creation, you can show the gross salary as Rs 8,900 and EPF/EPS/EDLI wages as Rs 15,000. This practice is acceptable, especially when an employee joins in the middle of a month. The PF department should not object to this calculation, as it is a common practice to align contributions with actual earnings.

2. ESIC applicability is determined based on the gross salary, not the EPF contribution. In this case, with a gross salary of Rs 8,900, ESIC would not be applicable as the threshold for ESIC coverage is typically higher. However, it's essential to stay updated with the latest ESIC regulations to ensure compliance with any changes in the future.

By following these guidelines, you can accurately handle EPF/EPS/EDLI calculations and determine ESIC applicability for employees based on their gross salary.
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