hii, i want to know how which allowances we can not deduct ESIC or which allowances should be deductable. same about PF. also i want to know whether Medical allowance deduct ESI or not?
From India, Delhi
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2From India, Delhi
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Dear Friend,
The ESIC is deducted from the entire gross salary. Apart from Washing Allowance and Fatigue Allowance, all allowances attract ESI. Additionally, every monthly payment such as incentives or other payments also attracts ESI. For P.F., it is calculated based on the salary.
For further clarification, please refer to the PF & ESI Act.
Regards,
SIDMAN
From India, Madras
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The ESIC is deducted from the entire gross salary. Apart from Washing Allowance and Fatigue Allowance, all allowances attract ESI. Additionally, every monthly payment such as incentives or other payments also attracts ESI. For P.F., it is calculated based on the salary.
For further clarification, please refer to the PF & ESI Act.
Regards,
SIDMAN
From India, Madras
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Dear Sir,
Thank you for the information. Can you tell me if ESI is deducted from other payments such as bonus, incentives, monthly rewards, overtime, etc.?
I also want to know what the consequences are if a person earning a gross salary of Rs. 14,000/- also earns Rs. 1,500 as overtime. Would ESI be deducted from the overtime amount? The total, gross salary + overtime, exceeds Rs. 15,000, which means the individual may be above the ESIC limit.
Thank you.
From India, Delhi
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Thank you for the information. Can you tell me if ESI is deducted from other payments such as bonus, incentives, monthly rewards, overtime, etc.?
I also want to know what the consequences are if a person earning a gross salary of Rs. 14,000/- also earns Rs. 1,500 as overtime. Would ESI be deducted from the overtime amount? The total, gross salary + overtime, exceeds Rs. 15,000, which means the individual may be above the ESIC limit.
Thank you.
From India, Delhi
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Hi PHHREADY,
ESIC is deducted from the entire monthly gross salary. "Gross" means (basic + DA + allowance + incentive + overtime). In your case mentioned above, the ESIC limit is calculated based on the gross salary of the individual, and for deduction purposes, gross + overtime are considered.
Hope you understood.
Siddharth
From India, Surat
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ESIC is deducted from the entire monthly gross salary. "Gross" means (basic + DA + allowance + incentive + overtime). In your case mentioned above, the ESIC limit is calculated based on the gross salary of the individual, and for deduction purposes, gross + overtime are considered.
Hope you understood.
Siddharth
From India, Surat
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ESI Exemption for Performance-Linked Incentives
A component payable at intervals exceeding two months is exempt from ESI liability. However, if a company pays a performance-linked incentive in June and then in September, is it still exempt from ESI? Suppose it is exempt, but what if the company also pays in November? What happens then?
Regards,
From India, Delhi
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A component payable at intervals exceeding two months is exempt from ESI liability. However, if a company pays a performance-linked incentive in June and then in September, is it still exempt from ESI? Suppose it is exempt, but what if the company also pays in November? What happens then?
Regards,
From India, Delhi
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Understanding ESI and PF Contributions
For the calculation of ESI, the gross salary is taken into consideration, which includes Basic + DA + all allowances + OT, except conveyance allowance, up to a maximum of Rs. 15,000/-. Employees' contribution is 1.75%, and employers' contribution is 4.75%.
For the calculation of PF, 12% of Basic + DA + RA + cash value of food concessions, up to a maximum of Rs. 6,500/-, is considered. Employers' contribution is 13.61% of the salary.
Regards
From India, Mumbai
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For the calculation of ESI, the gross salary is taken into consideration, which includes Basic + DA + all allowances + OT, except conveyance allowance, up to a maximum of Rs. 15,000/-. Employees' contribution is 1.75%, and employers' contribution is 4.75%.
For the calculation of PF, 12% of Basic + DA + RA + cash value of food concessions, up to a maximum of Rs. 6,500/-, is considered. Employers' contribution is 13.61% of the salary.
Regards
From India, Mumbai
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Sorry, my question was: "Is a component payable at intervals greater than two months exempted from ESI liability? What if a company pays a performance-linked incentive in June and then in September? Is it exempted from ESI? Suppose it is exempted, but if the company also pays in November, then what?"
From India, Delhi
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From India, Delhi
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PF ESIC.xls
PF salab limit.pdf