Can I get the help on "How to prepare payroll".Is any software mandatory for that or it can be done manually.If example is there it will be halpful. Thank you in advance.
From India, Hyderabad
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1From India, Hyderabad
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Hi friends, it's me Sivasakthere. I want to give more importance in HR. I have completed my MBA in HR. During my college life, they didn't teach us how to calculate payroll, PF, ESI, etc.
Can anyone help me regarding the same topic and area where I want to be alert and learn in the non-IT field? I am fully lacking behind in this part.
From India, Selam
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Can anyone help me regarding the same topic and area where I want to be alert and learn in the non-IT field? I am fully lacking behind in this part.
From India, Selam
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correct me if i am wrong ESI is calculated as 1.75% of basic salary pf is calculated as 12% of basic salary
From India, Mumbai
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From India, Mumbai
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Hi Rakesh, you are absolutely right. PF is contributed with 12% from the employee side on the basic salary, and 12% from the employer side. ESI is 1.75% from the employee side and 4.75% from the employer side on the basic salary.
Neesu
From India, New Delhi
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Neesu
From India, New Delhi
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Hi all,
Employee ESI contribution = 1.75% on gross.
Employer ESI contribution = 4.75% on gross.
The slab for ESI is Rs. 10,000/- gross. If an employee's gross is above the mentioned slab, he will not be covered under ESI.
Employee PF contribution = 12% on BASIC.
Employer PF contribution = 12% on BASIC.
The PF slab is Rs. 6,500/- basic, over and above which no need to pay PF, i.e. the maximum contribution is Rs. 780/- (12% of 6,500).
Actually, all the employees must be covered under PF even though their basic is above 6,500. However, there is an exception for this: an employee with the prior consent of the employer can exempt himself from PF contribution.
Please let me know if you have any more doubts or if you don't understand something.
Warm regards,
Sirisha.k
From India, Hyderabad
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Employee ESI contribution = 1.75% on gross.
Employer ESI contribution = 4.75% on gross.
The slab for ESI is Rs. 10,000/- gross. If an employee's gross is above the mentioned slab, he will not be covered under ESI.
Employee PF contribution = 12% on BASIC.
Employer PF contribution = 12% on BASIC.
The PF slab is Rs. 6,500/- basic, over and above which no need to pay PF, i.e. the maximum contribution is Rs. 780/- (12% of 6,500).
Actually, all the employees must be covered under PF even though their basic is above 6,500. However, there is an exception for this: an employee with the prior consent of the employer can exempt himself from PF contribution.
Please let me know if you have any more doubts or if you don't understand something.
Warm regards,
Sirisha.k
From India, Hyderabad
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hello everybody, heres a format where you can find the full calculation of salary along with the % of deduction.....hope this will solve your purpose......
From India, New Delhi
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From India, New Delhi
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Hi PF Employee Contribution Calculation - 12% on Basic + DA. ESI Employee Contribution Calculation - 1.75% on Gross Salary.
PF Employer Contribution Calculation - 13.61% on Basic + DA. ESI Employer Contribution Calculation - 4.75% on Gross Salary.
From India, Madras
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PF Employer Contribution Calculation - 13.61% on Basic + DA. ESI Employer Contribution Calculation - 4.75% on Gross Salary.
From India, Madras
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(Fact Checked)-The user's reply contains accurate information regarding PF and ESI contribution calculations. (1 Acknowledge point)
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Hi,
Payroll is the salary processing system. Payroll can be seen from two aspects: one from the HR side and the other from the commercial people side. The HR personnel process the payroll by sending attendance details or, more precisely, Leave Without Pay (LWP) details and other complete information that an employee is entitled to receive in a particular month. Upon receiving these details, the commercial team begins entering the data into the payroll software and starts processing the salaries.
During the salary processing for a specific month, we, the HR staff, provide comprehensive LWP details to the commercial department. When calculating LWP, we create an attendance sheet which includes weekly offs. In addition to weekly offs, we check the number of days an employee is absent, and out of those days, how many were taken as leave, which we cross-reference with the leave applications. If an employee has submitted an approved leave application and has sufficient leave balance, we mark them as on leave. However, if an employee has not submitted the leave application or lacks sufficient leave balance, they will be considered absent for that day, and their salary will be deducted accordingly.
Similarly, if there is a provision to grant one day's extra salary for a specific day if the employee attends work, we calculate the additional salary for those employees present on that day.
I hope this explanation clarifies the process. If not, please let me know.
Regards,
Amit Seth
From India, Ahmadabad
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Payroll is the salary processing system. Payroll can be seen from two aspects: one from the HR side and the other from the commercial people side. The HR personnel process the payroll by sending attendance details or, more precisely, Leave Without Pay (LWP) details and other complete information that an employee is entitled to receive in a particular month. Upon receiving these details, the commercial team begins entering the data into the payroll software and starts processing the salaries.
During the salary processing for a specific month, we, the HR staff, provide comprehensive LWP details to the commercial department. When calculating LWP, we create an attendance sheet which includes weekly offs. In addition to weekly offs, we check the number of days an employee is absent, and out of those days, how many were taken as leave, which we cross-reference with the leave applications. If an employee has submitted an approved leave application and has sufficient leave balance, we mark them as on leave. However, if an employee has not submitted the leave application or lacks sufficient leave balance, they will be considered absent for that day, and their salary will be deducted accordingly.
Similarly, if there is a provision to grant one day's extra salary for a specific day if the employee attends work, we calculate the additional salary for those employees present on that day.
I hope this explanation clarifies the process. If not, please let me know.
Regards,
Amit Seth
From India, Ahmadabad
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Hi Rakesh, a little correction I would like to make - ESI employee share = 1.75% of Gross salary ESI Employer share = 4.75% of Gross Salary Total Contibution is 6.5% of gross salary. Raj
From India, Pune
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From India, Pune
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(Fact Checked)-[The information provided in the user reply is correct. The calculation for ESI (Employee State Insurance) and PF (Provident Fund) contributions based on gross salary is accurate. Well done!] (1 Acknowledge point)
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Hello All i am attaching salary stackup which we are using. Newage
From India, Pune
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From India, Pune
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Hi Shiva, Herewith I am attaching compensation & benefits Info. this info I got from senior citehr member. I hope this will be help u. Prakash — — — — — -
From India, Bangalore
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From India, Bangalore
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Hello,
PF Employee Contribution Calculation: 12% on Basic + DA + Food Allowance.
ESI Employee Contribution Calculation: 1.75% on Gross Salary.
PF Employer Contribution Calculation: 13.61% on Basic + DA + Food Allowance.
ESI Employer Contribution Calculation: 4.75% on Gross Salary.
Akanksha Kukhraniya
From India, Delhi
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PF Employee Contribution Calculation: 12% on Basic + DA + Food Allowance.
ESI Employee Contribution Calculation: 1.75% on Gross Salary.
PF Employer Contribution Calculation: 13.61% on Basic + DA + Food Allowance.
ESI Employer Contribution Calculation: 4.75% on Gross Salary.
Akanksha Kukhraniya
From India, Delhi
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Dear friends,
I just want to know how the salary is calculated, how much percentage is to be divided for BASIC, HRA, DA, and other allowances. Payroll processing differs from one company to another. Please give me a brief discussion.
Thanks & Regards,
Paramagurunaath.SPS
From India, Madras
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I just want to know how the salary is calculated, how much percentage is to be divided for BASIC, HRA, DA, and other allowances. Payroll processing differs from one company to another. Please give me a brief discussion.
Thanks & Regards,
Paramagurunaath.SPS
From India, Madras
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(Fact Checked)-The user's reply is partially correct. It is important to note that the percentage division for components like BASIC, HRA, DA, and other allowances is not fixed by law but varies across companies based on their policies and industry standards. Payroll processing indeed differs among companies. (1 Acknowledge point)
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could you please tell me that how to prepare payroll. Please do let me know what are all general benefits will come in the payroll. regards Ramesh
From India, Hyderabad
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From India, Hyderabad
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(Fact Checked)-The user reply needs to focus on how to prepare payroll and the general benefits included. It lacks specifics and examples. Consider providing detailed information on payroll processing and benefits to enhance understanding. Thank you for your engagement and interest in learning more about payroll preparation and benefits. (1 Acknowledge point)
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Hi,
What Sirisha K. says is correct. Regarding payroll, it depends on the company as they will categorize components such as Basic, HRA, TA, FBP, Allowance, Bonus, etc. The percentages vary, with some companies allocating 35%, 40%, or 45% of the Gross to Basic pay. Therefore, we cannot specify exactly.
Bye
From India, Hyderabad
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What Sirisha K. says is correct. Regarding payroll, it depends on the company as they will categorize components such as Basic, HRA, TA, FBP, Allowance, Bonus, etc. The percentages vary, with some companies allocating 35%, 40%, or 45% of the Gross to Basic pay. Therefore, we cannot specify exactly.
Bye
From India, Hyderabad
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Hi,
The percentage that is divided for the various components varies from one company to another. In my company, we have the following components: Basic, HRA, CA, and CCA.
Where basic is 55%, HRA (house rent allowance) is 20%, CCA (City compensatory allowance) is 15%, and CA (Conveyance allowance) is 10%. All the above components are calculated on gross, where Gross is CTC minus employer contribution of PF and ESI (if applicable).
Calculations for PF and ESI:
- PF to be calculated on Basic. Employer and employee both contribute 12%. For basic above 6.5k, PF is a constant 780.
- ESI to be calculated on Gross. Employer 1.75%, Employee 4.75%. ESI is applicable only up to the net 10k.
- Net pay is gross minus PF minus ESI minus PT (Professional tax).
The Professional tax (PT) has the following slab:
- Rs.3000/- to 4999/- - Rs.30/-
- 5000/- to 7999/- - Rs.60/-
- 8000/- to 9999/- - Rs.100/-
- 10000/- to 14999/- - Rs.150/-
- Above Rs.15000/-, it is Rs.200/-
Hope this clarifies.
Regards,
Jayashri
From India, Madras
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The percentage that is divided for the various components varies from one company to another. In my company, we have the following components: Basic, HRA, CA, and CCA.
Where basic is 55%, HRA (house rent allowance) is 20%, CCA (City compensatory allowance) is 15%, and CA (Conveyance allowance) is 10%. All the above components are calculated on gross, where Gross is CTC minus employer contribution of PF and ESI (if applicable).
Calculations for PF and ESI:
- PF to be calculated on Basic. Employer and employee both contribute 12%. For basic above 6.5k, PF is a constant 780.
- ESI to be calculated on Gross. Employer 1.75%, Employee 4.75%. ESI is applicable only up to the net 10k.
- Net pay is gross minus PF minus ESI minus PT (Professional tax).
The Professional tax (PT) has the following slab:
- Rs.3000/- to 4999/- - Rs.30/-
- 5000/- to 7999/- - Rs.60/-
- 8000/- to 9999/- - Rs.100/-
- 10000/- to 14999/- - Rs.150/-
- Above Rs.15000/-, it is Rs.200/-
Hope this clarifies.
Regards,
Jayashri
From India, Madras
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(Fact Checked)-The user's reply contains accurate information regarding the breakdown of components like Basic, HRA, CA, and CCA, along with calculations for PF, ESI, and Professional tax. No amendments needed. (1 Acknowledge point)
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ESI Employee Contribution Calculation - 1.75% on Gross Salary (always round up). For example, if the contribution amount is Rs. 50.20, then you have to take it as Rs. 51.00.
ESI Employer Contribution Calculation - 4.75% on Gross Salary (even the employer contribution is also rounded up).
PF employee - 12% of Basic + DA.
PF employer - 12% of Basic + DA (out of which 8.33% is towards Pension and 3.67% to PF).
From India, Bangalore
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ESI Employer Contribution Calculation - 4.75% on Gross Salary (even the employer contribution is also rounded up).
PF employee - 12% of Basic + DA.
PF employer - 12% of Basic + DA (out of which 8.33% is towards Pension and 3.67% to PF).
From India, Bangalore
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(Fact Checked)-The user's reply contains accurate information regarding ESI and PF contributions. No corrections needed. (1 Acknowledge point)
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[QUOTE=sharmaneesu;378907]
Hi Rakesh, you are absolutely right. PF is contributed at 12% from the employee's side based on the basic salary and 12% from the employer's side. ESI is calculated at 1.75% from the employee's side and 4.75% from the employer's side, both based on the gross salary.
Ashok
From India, Mumbai
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Hi Rakesh, you are absolutely right. PF is contributed at 12% from the employee's side based on the basic salary and 12% from the employer's side. ESI is calculated at 1.75% from the employee's side and 4.75% from the employer's side, both based on the gross salary.
Ashok
From India, Mumbai
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Hi,
You mentioned that ESI is contributed on gross, so can you please specify if gross includes the basic salary + incentives or what it includes? I am a little bit confused! Please do let me know more about ESI.
Regarding competency mapping, how does it measure, as it is my project topic? Please guide me on this.
Thank you.
From India, Delhi
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You mentioned that ESI is contributed on gross, so can you please specify if gross includes the basic salary + incentives or what it includes? I am a little bit confused! Please do let me know more about ESI.
Regarding competency mapping, how does it measure, as it is my project topic? Please guide me on this.
Thank you.
From India, Delhi
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Dear all,
I am attaching the simple salary process in Excel. Please take the time to learn it as it will be very useful. Everyone should know how to work in Excel and understand the salary processing procedures. The document includes all the necessary details such as PF, ESI, etc. I believe that I have provided a valuable resource to all of you. Kindly view the attachment.
Warm Regards,
Vinoth.R
From India, Madras
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I am attaching the simple salary process in Excel. Please take the time to learn it as it will be very useful. Everyone should know how to work in Excel and understand the salary processing procedures. The document includes all the necessary details such as PF, ESI, etc. I believe that I have provided a valuable resource to all of you. Kindly view the attachment.
Warm Regards,
Vinoth.R
From India, Madras
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Hi Jayshri, As far as i know ESIC contribution of Employee is 1.75% & Employer’s contribution is 4.75%. Regards,
From India
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From India
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Hi All This is Devendra I Want to know that for caluclation of salary how many days shall be counted per month i.e 26, 27, or 30 and 31. Dev
From India, Surat
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From India, Surat
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Hi everybody,
I am an HR Executive in a private company. I would like to learn about the entire payroll process as handled in a corporate setting, including information on PF, ESI. Kindly send me the relevant details to clear all my queries.
Thanks & Regards,
Deepa.K
From India, Madras
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I am an HR Executive in a private company. I would like to learn about the entire payroll process as handled in a corporate setting, including information on PF, ESI. Kindly send me the relevant details to clear all my queries.
Thanks & Regards,
Deepa.K
From India, Madras
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Hi Jeyell,
If I am right, PF Employee Contribution Calculation is 12% on Basic + DA. PF Employer contribution is also 12% on Basic + DA. Within that 12% (Employer Contribution), 8.33% goes to the PF Scheme and the remaining 3.67% goes to the Pension Scheme.
Thanks and Regards, Jai
From India, Madras
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If I am right, PF Employee Contribution Calculation is 12% on Basic + DA. PF Employer contribution is also 12% on Basic + DA. Within that 12% (Employer Contribution), 8.33% goes to the PF Scheme and the remaining 3.67% goes to the Pension Scheme.
Thanks and Regards, Jai
From India, Madras
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Hi Friends,
If I am right, PF: Employee Contribution 12% on Basic + DA. Employer Contribution 12% on Basic + DA (Among this 12%, 8.33% will go to PF Scheme, and the remaining 3.67% will go to the Pension Scheme).
ESI: Employee Contribution 1.75% on Gross Salary. Employer Contribution 4.25% on Gross Salary.
If I committed a mistake anywhere, just let me know.
Thanks and Regards, Jai
From India, Madras
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If I am right, PF: Employee Contribution 12% on Basic + DA. Employer Contribution 12% on Basic + DA (Among this 12%, 8.33% will go to PF Scheme, and the remaining 3.67% will go to the Pension Scheme).
ESI: Employee Contribution 1.75% on Gross Salary. Employer Contribution 4.25% on Gross Salary.
If I committed a mistake anywhere, just let me know.
Thanks and Regards, Jai
From India, Madras
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Hi,
Please find the breakup of PF for the employee and employer sides. The employer's amount goes into five accounts - account No. 1, 2, 10, 21, and 22.
PF Challan
Following challans duly filled in should be submitted:
- P.F. Cont. (Employee's + Employer's Share) A/c No. - 01 - 12% + 3.67%
- Pension Fund Contribution A/c No. - 10 - 8.33%
- Administrative Charges A/c No. - 02 - 1.10%
- E.D.L.I.F. A/c No. - 21 - 0.50%
- Administrative Charges A/c No. - 22 - 0.01%
I believe it will be useful for you. :)
Thanks,
Shuchi
From India, Gurgaon
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Please find the breakup of PF for the employee and employer sides. The employer's amount goes into five accounts - account No. 1, 2, 10, 21, and 22.
PF Challan
Following challans duly filled in should be submitted:
- P.F. Cont. (Employee's + Employer's Share) A/c No. - 01 - 12% + 3.67%
- Pension Fund Contribution A/c No. - 10 - 8.33%
- Administrative Charges A/c No. - 02 - 1.10%
- E.D.L.I.F. A/c No. - 21 - 0.50%
- Administrative Charges A/c No. - 22 - 0.01%
I believe it will be useful for you. :)
Thanks,
Shuchi
From India, Gurgaon
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Hello sir, I am searching for the job in HR.I have completed M.P.M in 07 and having 1 yr exp. in Consultancy. please Guide me. Nidhi Saxena
From India, Pune
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From India, Pune
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(Fact Checked)-The information provided about processing payroll and calculating leave without pay is accurate based on standard HR practices and norms. (1 Acknowledge point)
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Hi all,
Employee ESI contribution = 1.75% on ESI earning gross Employer ESI contribution = 4.75% on ESI earning gross Note: Washing allowance is exempted from ESI earning. And the cutoff limit for ESI is Rs. 10,000/- PM, if an employee's gross is above the mentioned cutoff after the first half or before, then he will not be covered under ESI act. But in between the 1st and 2nd half ESI gross will cross the cutoff limit then he has to contribute till the 1st or 2nd half will not over. 1st half: Apr to Sep and 2nd half means: Oct to Mar
Also, if an employee is drawing average daily wages less than 70 Rs. per day, then the employee need not pay ESI; only the employer will pay 4.75% on ESI earned gross.
Employee PF contribution = 12% on BASIC+DA Employer PF contribution = 12% on BASIC+DA PF Cutoff limit is Rs. 6500/-, over and above which no need to pay PF, i.e., the maximum contribution is Rs. 780/- (12% of 6500). Actually, all the employees must be covered under PF even though their Basic+DA is above 6500. However, there is an exception for this, an employee with the prior consent of the employer can exempt himself from PF contribution.
Please do let me know if you have any more doubts or if you don't understand something.
Warm regards, Hansraj Pawar
From India, Bangalore
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Employee ESI contribution = 1.75% on ESI earning gross Employer ESI contribution = 4.75% on ESI earning gross Note: Washing allowance is exempted from ESI earning. And the cutoff limit for ESI is Rs. 10,000/- PM, if an employee's gross is above the mentioned cutoff after the first half or before, then he will not be covered under ESI act. But in between the 1st and 2nd half ESI gross will cross the cutoff limit then he has to contribute till the 1st or 2nd half will not over. 1st half: Apr to Sep and 2nd half means: Oct to Mar
Also, if an employee is drawing average daily wages less than 70 Rs. per day, then the employee need not pay ESI; only the employer will pay 4.75% on ESI earned gross.
Employee PF contribution = 12% on BASIC+DA Employer PF contribution = 12% on BASIC+DA PF Cutoff limit is Rs. 6500/-, over and above which no need to pay PF, i.e., the maximum contribution is Rs. 780/- (12% of 6500). Actually, all the employees must be covered under PF even though their Basic+DA is above 6500. However, there is an exception for this, an employee with the prior consent of the employer can exempt himself from PF contribution.
Please do let me know if you have any more doubts or if you don't understand something.
Warm regards, Hansraj Pawar
From India, Bangalore
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(Fact Checked)-The user's reply contains accurate information regarding the contributions for ESI and PF, including the cutoff limits and exemptions. The details provided align with the current laws and regulations. (1 Acknowledge point)
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Hi all, There are many payroll vendor who provide the software/solution to process our payroll... why to worry!!!, they will provide the solution. We can make use of them.
From India, Bangalore
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From India, Bangalore
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Dear jayshri, Little correction in ur post employer’s contribution towards ESIC is 4.75 % and employee contribution is 1.75%. Regards Jai
From India, Pune
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From India, Pune
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(Fact Checked)-[The employee contribution towards ESIC is 1.75%, and the employer's contribution is 4.75%.] (1 Acknowledge point)
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Employee ESI contribution is 1.75% of the gross salary.
Employer ESI contribution is 4.75%, and the total is 6.50%.
Employee PF contribution is 12% of the basic salary (maximum basic is Rs. 6,500) on the earned monthly salary.
Employer PF contribution is 12%.
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Employer ESI contribution is 4.75%, and the total is 6.50%.
Employee PF contribution is 12% of the basic salary (maximum basic is Rs. 6,500) on the earned monthly salary.
Employer PF contribution is 12%.
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SALARY SHEET CALCULATION.xls
Salary calculation.doc
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(Fact Checked)-[The information provided is correct. Thank you for sharing your knowledge on PF and ESI contributions! Keep up the good work.] (1 Acknowledge point)