Understanding PF, PT, and ESI Calculations: Can Anyone Explain the Rules and Regulations?

Hi,

Can anybody tell me how do we calculate the PF, PT, and ESI? What are the rules and regulations to calculate all these?

I hope to hear answers from you.

Prajaktha

Hi Prajaktha,

PF is contributed from both sides at 12% of the basic salary.

ESI is calculated at 1.75% of the gross salary from the employee's side and at 4.75% of the gross salary from the employer's side. The ceiling for ESI is 10,000/- of the gross salary. Once this ceiling is reached, one will be exempted from ESI.

On the other hand, PT deduction varies from state to state.

Regards,

Amit Seth.