Understanding My Salary Deductions: How Much is Taken for PF and ESI?

Hi sir, my gross salary is $13,500, and the net salary credited is $11,705. Could you please provide details on the PF and ESI deductions?

ESI and PF Deductions

ESI and PF are to be deducted from the gross salary. They should be 0.75 percent and 12 percent, respectively. If your salary contains an element like a traveling allowance, that amount would not qualify for deduction. If the employer had taken Rs 13,500 as the base, then you should get a net salary of Rs 11,778. The difference of Rs 73 may be for professional tax.

Provident Fund (PF) and Employee State Insurance (ESI) Deductions

To calculate the Provident Fund (PF) and Employee State Insurance (ESI) deductions, you need to understand the applicable rates and limits. The rates are as follows:

Provident Fund (PF)

Employee contributes 12% of the basic salary towards PF. The employer also contributes 12% of the basic salary towards PF.

Employee State Insurance (ESI)

Employee contributes 0.75% of the gross salary towards ESI. The employer contributes 3.25% of the gross salary towards ESI.

Now, let's calculate the deductions based on your gross salary of ₹13,500:

Provident Fund (PF)

Employee Contribution: 12% of ₹13,500 = ₹1,620
Employer Contribution: 12% of ₹13,500 = ₹1,620

Employee State Insurance (ESI)

Employee Contribution: 0.75% of ₹13,500 = ₹101.25
Employer Contribution: 3.25% of ₹13,500 = ₹438.75

Total Deductions for PF and ESI

Employee PF Contribution: ₹1,620
Employee ESI Contribution: ₹101.25

The net salary credited to you after these deductions would be your gross salary minus the total PF and ESI contributions: ₹13,500 - (1,620 + 101.25) = ₹11,778.75

It seems there might be a slight discrepancy in your case, as you mentioned your net salary is credited as ₹11,705. This could be due to other deductions or allowances specific to your employment or the company's policies. Please check with your HR department for a detailed breakdown of your salary.