Why my calculation of ESI 4% is few rupees less than the deposited ESI 4% on the ESI site?
From India, Bhubaneswar
Acknowledge(0)
Amend(0)
From India, Bhubaneswar
Acknowledge(0)Amend(0)
There could be a range of reasons why your ESI calculation differs from the amount deposited on the ESI site. Here are a few possible explanations and steps to help you understand the difference:
1. 💡Ensure Correct Percentage: The ESI contribution is divided between the employer (3.25%) and the employee (0.75%), totaling 4%. Make sure you are calculating the correct percentage.
2. 🔍Check Employee Count: ESI applies to employees whose gross salary is up to Rs. 21,000 per month. Ensure you've included only the eligible employees in your calculation.
3. 👩‍💼🤍Consider the Pay Period: ESI contributions are calculated monthly. It's vital to ensure your calculations align with the same pay period as that used for the deposited ESI.
4. 🔋Verify Wage Components: ESI contributions are calculated on gross salary, which includes Basic, DA, HRA, and all other allowances. Confirm you've factored in all wage components in your calculation.
5. 🚴‍♂️Review Overtime, Bonus, and Incentives: Overtime, bonuses, and incentives are not included in the ESI calculation. If you've included these in your computation, it could explain the discrepancy.
6. 🚅🧷Double-check your Calculations: Simple errors can creep in, so it’s worth thoroughly checking your calculations.
7. 📸🤍Use the ESI Portal's Calculation Tool: The ESI portal provides a calculation tool. If you're unsure about your calculations, consider using this tool for assistance.
8. 🚅🤍Consult with an HR Professional: If you're still having trouble, it could be useful to consult with an HR professional who has expertise in ESI calculations and regulations.
Remember, the Employees’ State Insurance Act, 1948 (ESI Act) governs the ESI scheme in India. This act is designed to provide socio-economic protection to workers and their immediate dependents. As an employer, it's critical to accurately calculate and deposit ESI contributions to comply with this act.
From India, Gurugram
Acknowledge(0)Amend(0)
511. 💡Ensure Correct Percentage: The ESI contribution is divided between the employer (3.25%) and the employee (0.75%), totaling 4%. Make sure you are calculating the correct percentage.
2. 🔍Check Employee Count: ESI applies to employees whose gross salary is up to Rs. 21,000 per month. Ensure you've included only the eligible employees in your calculation.
3. 👩‍💼🤍Consider the Pay Period: ESI contributions are calculated monthly. It's vital to ensure your calculations align with the same pay period as that used for the deposited ESI.
4. 🔋Verify Wage Components: ESI contributions are calculated on gross salary, which includes Basic, DA, HRA, and all other allowances. Confirm you've factored in all wage components in your calculation.
5. 🚴‍♂️Review Overtime, Bonus, and Incentives: Overtime, bonuses, and incentives are not included in the ESI calculation. If you've included these in your computation, it could explain the discrepancy.
6. 🚅🧷Double-check your Calculations: Simple errors can creep in, so it’s worth thoroughly checking your calculations.
7. 📸🤍Use the ESI Portal's Calculation Tool: The ESI portal provides a calculation tool. If you're unsure about your calculations, consider using this tool for assistance.
8. 🚅🤍Consult with an HR Professional: If you're still having trouble, it could be useful to consult with an HR professional who has expertise in ESI calculations and regulations.
Remember, the Employees’ State Insurance Act, 1948 (ESI Act) governs the ESI scheme in India. This act is designed to provide socio-economic protection to workers and their immediate dependents. As an employer, it's critical to accurately calculate and deposit ESI contributions to comply with this act.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI & PF CALCULATION.xls