Hi all, Please someone help out me, How are calculate the PF, Gratuity and ESI? In this process of calculations, which basis they calculate contribution? Someone help me on these calculations
From India, Gurgaon
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14From India, Gurgaon
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Dear Prasad, Huge Discussions are there regarding this topic. You can use research tab. Even then if you can’t clarify your query, then we can have a discuss.
From India, Madras
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From India, Madras
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Salary Breakup
- Basic: 1000
- DA: 500
- HRA: 400
- Others: 1000
Gross Salary: 2900
For PF Calculation
(Basic + DA) * 12% means: (1000 + 500) / 100 * 12 (same from the company) and other administrative charges 1.61%. Max up to 6500/-.
For ESI Calculation
Gross salary * 1.75%
From employee salary deduction means: 2900 / 100 * 1.75
From Employer: 2900 / 100 * 4.25
Max up to 15000/-. For more details, see the............
Regards
From India, Vijayawada
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- Basic: 1000
- DA: 500
- HRA: 400
- Others: 1000
Gross Salary: 2900
For PF Calculation
(Basic + DA) * 12% means: (1000 + 500) / 100 * 12 (same from the company) and other administrative charges 1.61%. Max up to 6500/-.
For ESI Calculation
Gross salary * 1.75%
From employee salary deduction means: 2900 / 100 * 1.75
From Employer: 2900 / 100 * 4.25
Max up to 15000/-. For more details, see the............
Regards
From India, Vijayawada
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Dear Prasad Subject - How calculate PF, Gratuity and ESI........... Please see the formula of sheet attachment for some .... more you need to discuss. Regards Vinod Chauhan Consultant New Delhi
From India, Delhi
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From India, Delhi
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What are the contribution periods and what are the benefit periods in the ESI Act? In the Provident Fund, how do we calculate PF, pension fund, and DIL? If you have any materials on ESI, PF, Gratuity, and Superannuation acts, please share them.
Thank you.
From India, Gurgaon
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Thank you.
From India, Gurgaon
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Hi all, what is the difference between gratuity fund and superannuation fund?pls someone give information............
From India, Gurgaon
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From India, Gurgaon
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Hi all, someone give information , what are the contribution period and Benefit period in the ESI act?
From India, Gurgaon
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From India, Gurgaon
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ESI Contribution Periods
The ESI contribution periods are:
1. 1st April to 30th September
2. 1st October to 31st March
If any employee falls within the ESI limit (i.e., Rs. 15,000/- gross) during the contribution period, ESI will be deducted until the end of the contribution period, even if his/her salary is increased to above Rs. 15,000/-. The benefit period is the next contribution period.
Regards,
VGKVKM
From India, Bangalore
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The ESI contribution periods are:
1. 1st April to 30th September
2. 1st October to 31st March
If any employee falls within the ESI limit (i.e., Rs. 15,000/- gross) during the contribution period, ESI will be deducted until the end of the contribution period, even if his/her salary is increased to above Rs. 15,000/-. The benefit period is the next contribution period.
Regards,
VGKVKM
From India, Bangalore
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Dear Prasadu, Thank you, VGKVKM, for providing good information. Please give a little more explanation on this topic, i.e., contribution period and benefit period in the ESI Act.
Contribution Periods Under ESI
1. Contribution periods under ESI are:
- 1st April to 30th September, and the benefit period for this contribution starts on 1st January to 30th June.
2. Contribution period:
- 1st October to 31st March, and the benefit period for this contribution starts on 1st July to 31st December.
Regards,
Kiran Kale.
From India, Kolhapur
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Contribution Periods Under ESI
1. Contribution periods under ESI are:
- 1st April to 30th September, and the benefit period for this contribution starts on 1st January to 30th June.
2. Contribution period:
- 1st October to 31st March, and the benefit period for this contribution starts on 1st July to 31st December.
Regards,
Kiran Kale.
From India, Kolhapur
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Dear I am send sum calculation i hope u useful ESI & PF CALCULATION.
From India, Delhi
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From India, Delhi
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I am sorry, Mr. Kiran is correct regarding the benefit period. When I replied quickly, I made a mistake.
Gratuity Calculation
Gratuity is payable if an employee completes 5 years of continuous service. Continuous service includes eligible leaves. For each year of service, the employee will receive 15 days of BASIC+DA. The payment is calculated based on 26 working days, i.e., (BASIC+DA)/26*15.
PF Calculation
PF is calculated based on BASIC + DA. It is deducted from the employee's monthly salary (Basic+DA) at a minimum of 10% (some private PF funds offer more than 10%). This amount will be deducted from the employee's salary, and they will receive the net of PF as their salary. The employer will also contribute the same percentage towards the employee's PF contribution. Upon retirement, the employee will receive both the employee and employer contributions with interest up to the date. Early withdrawal is also possible. For more details, refer to the PF Act.
Out of the employer's contribution, 8.33% will be allocated to the EPF pension.
Regards
From India, Bangalore
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Gratuity Calculation
Gratuity is payable if an employee completes 5 years of continuous service. Continuous service includes eligible leaves. For each year of service, the employee will receive 15 days of BASIC+DA. The payment is calculated based on 26 working days, i.e., (BASIC+DA)/26*15.
PF Calculation
PF is calculated based on BASIC + DA. It is deducted from the employee's monthly salary (Basic+DA) at a minimum of 10% (some private PF funds offer more than 10%). This amount will be deducted from the employee's salary, and they will receive the net of PF as their salary. The employer will also contribute the same percentage towards the employee's PF contribution. Upon retirement, the employee will receive both the employee and employer contributions with interest up to the date. Early withdrawal is also possible. For more details, refer to the PF Act.
Out of the employer's contribution, 8.33% will be allocated to the EPF pension.
Regards
From India, Bangalore
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[QUOTE=VGKNAIRVKM;1683626]
I am sorry, Mr. Kiran is correct regarding the benefit period. When I replied quickly, I made a mistake.
Gratuity is payable when an employee completes 5 years of continuous service. Continuous service includes their eligible leaves as well. For each year of service, they will receive 15 days of BASIC+DA. The payment is calculated based on 26 working days, i.e., (BASIC+DA)/26*15.
PF is calculated based on BASIC + DA. It is deducted from the employee's monthly salary (Basic+DA) at a minimum of 10% (some private PF funds offer more than 10%). This deduction will be taken from the employee's salary, and they will receive the net of PF only as salary. The employer will contribute the same percentage towards the employee's PF. Upon retirement, the employee will receive both the employee and employer contributions with interest accrued to date (early withdrawal is also possible).
For more details, refer to the PF ACT.
Out of the employer's contribution, 8.33% will go towards the EPF pension.
Explanation of Employee's Provident Fund
I wish to explain a few points regarding the Employee's Provident Fund. The coverage of EPF is statutorily applicable when the firm has 20 employees receiving salaries. The contribution percentage is 12% of the salary/wages, not 10%.
For units with less than 20 employees who choose to voluntarily cover under the EPF & MP Act Section 1(4), the contribution percentage is 10%.
Regarding withdrawals, employees who leave before completing 10 years of PF service can withdraw the full amount in A/C.1 and A/C.10, receiving interest only on PF accumulation (15.67%).
Employees with 10 years of service in PF/EPS can withdraw the EPF amount and are eligible for a pension after turning 58, or can opt for reduced pension at age 50 with a 4% reduction per year.
I hope this information is helpful for you and others seeking clarity.
Regards,
Kiran Kale
From India, Kolhapur
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I am sorry, Mr. Kiran is correct regarding the benefit period. When I replied quickly, I made a mistake.
Gratuity is payable when an employee completes 5 years of continuous service. Continuous service includes their eligible leaves as well. For each year of service, they will receive 15 days of BASIC+DA. The payment is calculated based on 26 working days, i.e., (BASIC+DA)/26*15.
PF is calculated based on BASIC + DA. It is deducted from the employee's monthly salary (Basic+DA) at a minimum of 10% (some private PF funds offer more than 10%). This deduction will be taken from the employee's salary, and they will receive the net of PF only as salary. The employer will contribute the same percentage towards the employee's PF. Upon retirement, the employee will receive both the employee and employer contributions with interest accrued to date (early withdrawal is also possible).
For more details, refer to the PF ACT.
Out of the employer's contribution, 8.33% will go towards the EPF pension.
Explanation of Employee's Provident Fund
I wish to explain a few points regarding the Employee's Provident Fund. The coverage of EPF is statutorily applicable when the firm has 20 employees receiving salaries. The contribution percentage is 12% of the salary/wages, not 10%.
For units with less than 20 employees who choose to voluntarily cover under the EPF & MP Act Section 1(4), the contribution percentage is 10%.
Regarding withdrawals, employees who leave before completing 10 years of PF service can withdraw the full amount in A/C.1 and A/C.10, receiving interest only on PF accumulation (15.67%).
Employees with 10 years of service in PF/EPS can withdraw the EPF amount and are eligible for a pension after turning 58, or can opt for reduced pension at age 50 with a 4% reduction per year.
I hope this information is helpful for you and others seeking clarity.
Regards,
Kiran Kale
From India, Kolhapur
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For ESIC, it is applicable until your gross salary does not exceed INR 15,000, and the monthly deductions would be 1.75% (employee contribution) and 4.75% (employer contribution).
For example, if my salary is INR 15,000 gross, I am entitled to ESIC. Even if you receive a salary hike in May, your ESIC deductions will continue until September, as ESIC returns are processed half-yearly.
Thank you.
Regards
From India, Mumbai
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For example, if my salary is INR 15,000 gross, I am entitled to ESIC. Even if you receive a salary hike in May, your ESIC deductions will continue until September, as ESIC returns are processed half-yearly.
Thank you.
Regards
From India, Mumbai
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Dear Mr. Kiran, Thank you for providing more details regarding PF. I would like to clarify that the EPF contribution has been increased from 8.33% to 10%, and for those who were contributing 10%, it has been raised to 12%. I mentioned this briefly in my previous reply. Upon reviewing your response, I visited the EPF website where they clearly outline the details as follows (ref epfindia.nic.in IN POINT NO 24):
24) What is the voluntary rate of Provident Fund contribution by the member? According to the Act, the member must contribute at the rate of 10% or 12% of their basic pay, D.A., and retaining allowance if any. If the member wishes to contribute more voluntarily, they can do so at any rate up to 100% of basic and D.A. However, the employer is not obligated to match the enhanced rate.
Regards, VGKVKM
From India, Bangalore
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24) What is the voluntary rate of Provident Fund contribution by the member? According to the Act, the member must contribute at the rate of 10% or 12% of their basic pay, D.A., and retaining allowance if any. If the member wishes to contribute more voluntarily, they can do so at any rate up to 100% of basic and D.A. However, the employer is not obligated to match the enhanced rate.
Regards, VGKVKM
From India, Bangalore
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Dear VGKVKM, Yes, it is true that for those covered under u/s.1(4), the rate of contribution is 10%, as mentioned in the aforementioned point no. 24. I have also provided information on this in my previous response. Regards, KIRAN KALE.
From India, Kolhapur
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From India, Kolhapur
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sir if one person completes 58,but still working means ,how to calculate for challan payment...how to make basic in difference.please give some idea.
From India, Madras
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From India, Madras
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Pension Scheme Contribution After 58 Years
After completion of 58 years of age, the contribution of 8.33% towards the pension scheme stops, and that same contribution should be diverted to the employer's contribution. This means the employer's contribution should be at 12% where 3.67% is shown.
Regards,
KIRAN KALE
From India, Kolhapur
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After completion of 58 years of age, the contribution of 8.33% towards the pension scheme stops, and that same contribution should be diverted to the employer's contribution. This means the employer's contribution should be at 12% where 3.67% is shown.
Regards,
KIRAN KALE
From India, Kolhapur
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Hi Sir,
I am a fresher with no experience in PF and ESI. I have joined as an HR executive in a private firm where more than 20 employees are working. My manager is asking me to work on PF and ESI. There are no previous records for PF and ESI as we are going to start deducting PF for our employees for the upcoming year. I don't know how and where to start working on this.
Regards,
Rameela
From India, Chennai
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I am a fresher with no experience in PF and ESI. I have joined as an HR executive in a private firm where more than 20 employees are working. My manager is asking me to work on PF and ESI. There are no previous records for PF and ESI as we are going to start deducting PF for our employees for the upcoming year. I don't know how and where to start working on this.
Regards,
Rameela
From India, Chennai
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Calculation of PF ESI Damages (Latest).xls
Gratuity calculation.doc