Hi,
My question is how to calculate ESI in salary. My company divided the salary structure into basic, DA, HRA, CA, WA, SPA, and EA. Currently, we are only calculating basic and DA. Is this correct? Please provide suggestions.
From India, Coimbatore
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1My question is how to calculate ESI in salary. My company divided the salary structure into basic, DA, HRA, CA, WA, SPA, and EA. Currently, we are only calculating basic and DA. Is this correct? Please provide suggestions.
From India, Coimbatore
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Dear Arun,
Please refer to the definition of 'wages' as applicable in the ESI Act, 1948. You have used abbreviations in your question. But as I understand them, all of them will have to be included in the 'wages' for payment of contributions.
Remember that ESI contribution is NOT ONLY ON BASIC AND D.A.
"wages" means all remuneration paid or payable, in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay-off and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include-- (a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; (b) any traveling allowance or the value of any traveling concession; (c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (d) any gratuity payable on discharge.
From India
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Please refer to the definition of 'wages' as applicable in the ESI Act, 1948. You have used abbreviations in your question. But as I understand them, all of them will have to be included in the 'wages' for payment of contributions.
Remember that ESI contribution is NOT ONLY ON BASIC AND D.A.
"wages" means all remuneration paid or payable, in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay-off and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include-- (a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; (b) any traveling allowance or the value of any traveling concession; (c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (d) any gratuity payable on discharge.
From India
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Other than washing allowances, you can blindly calculate 1.75% (rounded up to the next higher rupee) towards employees' share and 4.75% of the total wages paid to all the employees, rounded up to the next higher rupee, to be paid towards the employer's share. Total of 6.5% to be paid before the 21st of the following month. Any queries, don't hesitate to call 09443434313 or email vsyamprasad@yahoo.com.
From India, Hyderabad
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From India, Hyderabad
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Please calculate the ESI on gross salary. It may include basic, hra, da, conveyance, spl allowance. e.g. total earning of an employee.
From India, Delhi
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From India, Delhi
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Dear Sir,
I have a question. I am from Kolkata and working in the HR Dept. Our business is in renewable energy, with a total of around 30 employees.
Sir, please tell me, for official persons, what do I have to do for Gratuity? What statutory requirements regarding Gratuity do I have to fulfill?
In our plant, the area is not covered by the ESIC hospital. In that case, do I have to take "Workmen Compensation"?
Kindly suggest to me what other statutory liabilities I need to take care of.
Awaiting your reply. You can send me your response to banerji_priya@yahoo.com.
Supriya
From India, Calcutta
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I have a question. I am from Kolkata and working in the HR Dept. Our business is in renewable energy, with a total of around 30 employees.
Sir, please tell me, for official persons, what do I have to do for Gratuity? What statutory requirements regarding Gratuity do I have to fulfill?
In our plant, the area is not covered by the ESIC hospital. In that case, do I have to take "Workmen Compensation"?
Kindly suggest to me what other statutory liabilities I need to take care of.
Awaiting your reply. You can send me your response to banerji_priya@yahoo.com.
Supriya
From India, Calcutta
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Gratuity calculation.doc
ESI-PF-Gratuity .xls