Understanding PT, PF, ESI, and Income Tax: Can You Help Me Figure This Out?

Hi, can you all please help me with how to calculate PT, PF, ESI, and also the concept of income tax? Thank you.

Hi Riya,

ESI is contributed from both sides - employees as well as employers. It is calculated based on the gross salary per month, with a maximum ceiling of Rs. 10,000 per month. The contribution from both sides is as follows:

Employee Side - 1.75% of gross per month
So, if the gross salary of an employee is Rs. 8,000 per month, the ESI contribution would be 8000 * 1.75% = Rs. 140.

Employer Side - 4.75% of gross per month
The ESI contribution would be 8000 * 4.75% = Rs. 380.

Additionally, PF is also paid from both sides. Both the employer and the employee are required to contribute 12% of the basic salary. Out of this 12%, the employer's contribution includes 8.33% for the Pension fund, while the remaining 3.67% goes to the PF Fund itself.

Regards,
Amit Seth.

Hello,

Can you please explain to me about ESI, PF, HRA, Medical Reimbursement, Income Tax, DA, etc. with detailed examples? I searched on Google regarding this, but I have not found information. But today, I came across this website address. I hope I will get the required information. Alternatively, you can contact me at 9885228756.

Thank you.

Hi,

PF is deducted on Basic salary, i.e., Basic + DA is Rs. 6500/- or less; above that, PF is not deducted.

1) Employee – 12% (of Basic + DA + Food concession allowance + retaining allowance, if any)
2) Employer – % (of Basic + DA + Food concession allowance + retaining allowance, if any) [% = % PF + % Pension Scheme + % Admin. Charges of PF + 0.5% EDLI + % Admin Charges of EDLI]

EDLI - Employee Deposit Linked Insurance

EPF:
Here, this PF is normally deducted from the basic & DA (dearness allowance) such that Basic salary - 35% DA - 15% of gross salary. For example, if the gross salary of a person is:
Basic - 35% @ 9000 = 3150 DA - 15% @ 9000 = 1350 Total = 4500

Therefore, the total amount deducted would be @ 12%, i.e., PF - 540/-
The maximum ceiling limit of PF:
If the basic + DA exceeds 6500/-, then the contribution is optional. Some companies may have their own policies.

Provident fund is calculated towards the employers as %:
1. Employers Contribution
- A/c No.1 - %
- Admin Charges - 1.1%
- Fund A/c - %
- A/c - 0.5%
- Admin Charges - %

ESIC Calculation:
In ESIC, it includes medical benefits for both the employee and employer. It is calculated based on the gross pay per month, with a maximum limit up to p.m. Employee side - 1.75% and Employer side - 4.75%. So, if the gross of an employee is 8000/- p.m, their contribution would be 8000 * 1.75% = 140/- Employer 8000 * 4.75% = 380/-
Therefore, Net pay = Gross pay - Total deductions

1. Those who are getting 10000/- gross per month will not be applicable under ESIC act.
2. 20 eligible employees to get registered in ESIC
3. Eligible employees mean those who are getting gross pay up to 10000/- or less per month.
Apart from that, there is a tax deduction, which includes the Income & professional tax.

CTC means the cost to the company, i.e., all the expenses incurred by the company for any of its employees for a particular period (monthly/yearly):
Gross pay + employer's PF + employer's ESI + bonus = CTC
i.e., THE SALARY PAYABLE AND OTHER STATUTORY BENEFITS PAYABLE BY THE COMPANY.

CTC
-----
CTC is the cost to the company and the components are:
Basic + HRA + CONVEYANCE + MOBILE REIMBURSEMENT + MEDICAL reimbursement + All allowances + LTA + employer contribution of PF + Employer Contribution towards ESI + Total variable incentives + Perks & benefits + Insurance Premium (in case of Group insurance)

Gratuity Calculation:
It is deposited @ 4.81% of Basic per month. After completing 5 years of service, one may claim Gratuity at the time of separation from the organization, and it is paid @ 15 days of salary for each year of service. For example, for 6 years of experience, one's gratuity will be calculated with this formula -

Hope this will be useful for you. If you have any other clarifications, please do visit:

EPF: www.epfindia.com
ESIC: www.esic.nic.in

Regards,
Jenny

Can someone please post a PPT on PF & ESI? I need it for training purposes. It would be very helpful.

By the way, this is my first query on this website. I hope you guys will help me.

Regards,
Debasree

Hi friends, I am M.S.W (H.R) fresher. I am looking for an HR job in manufacturing industries located in Chennai or nearby areas like Gummidipundi, Sriperumbathur, Perungudi, Tambaram, etc. Can anybody refer me?

Dear Members,

How to calculate ESI? Will HRA be included in the Total Earned salary for ESI calculation? Yes/No. If no, what can I do as I have already included HRA in the total Earned salary for ESI calculation since the company was established. Please guide me.

Best regards,
V.R. Yadav.

[QUOTE=debasreetalukder2008;520407] Can someone please post a PPT on PF & ESI? I need it for training purposes. It would be very helpful.

By the way, this is my first query on this website. I hope you guys will help me.

Regards, Dhananjay Verma HR

Calculating Provident Fund (PF), Employee State Insurance (ESI), and Professional Tax (PT) Challan

To calculate Provident Fund (PF), Employee State Insurance (ESI), and Professional Tax (PT) challan, you need to follow specific guidelines and formulas provided by the respective authorities.

For PF calculation, the contribution is usually 12% of the basic salary from both the employer and the employee. ESI calculation is done based on the gross salary, and the percentage contribution varies. Professional Tax (PT) is calculated based on the income slab and the state-specific regulations.

It's essential to ensure accurate calculations and timely submissions to comply with the legal requirements and avoid any penalties. If you need further assistance or detailed instructions on how to calculate these deductions, feel free to ask.

I require details or a format of PF, PT, ESI, basic salary, TA, DA, HRA, Medical Reimbursement, and Attire allowance for a salary of Rs. 40,000 per month. If possible, I would be thankful to you forever.

Regards.

Professional Tax Guidance Needed

Can anyone guide me on professional tax? Our company is in the pharma industry and operates from Hyderabad, Telangana State as a corporate office, serving all of India. Although we do not have any registered offices there, our marketing employees work in that region. Regarding Professional Tax, we are currently deducting PT in accordance with the Telangana State Act. Should we be deducting PT based on the specific state tax regulations, or should we follow the guidelines of the corporate office? I need clarification on this matter. Kindly, could someone help me out?

Regards,
N Venkateswari

Dear Jenny,

Today, I gained the knowledge of how to calculate the PF and ESI through the details you provided above. It's really helpful for those who don't know how to do it.

Thanks again.