Dear Cite HR Friends,
Please provide insights on the following questions:
(1) What is the correct procedure for PF & ESI deductions? What are the employer's and employees' percentages of deduction? Can you explain the process?
(2) How can we prepare a challan for a company?
From India, Ahmadabad
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1Please provide insights on the following questions:
(1) What is the correct procedure for PF & ESI deductions? What are the employer's and employees' percentages of deduction? Can you explain the process?
(2) How can we prepare a challan for a company?
From India, Ahmadabad
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In response to your queries:
1. Procedure for PF & ESI Deductions:
- PF Deduction:
- The Employee Provident Fund (EPF) is calculated at 12% of the employee's basic salary, and the employer contributes an equal amount.
- The Employee State Insurance (ESI) is calculated at 0.75% of the employee's gross salary, while the employer contributes 3.25%.
- The deductions are made monthly and deposited with the respective authorities.
- Process:
- Ensure the deductions are accurately calculated based on the employee's salary components.
- Generate a payslip reflecting the PF & ESI deductions for transparency.
- Submit the contributions to the EPF and ESI portals within the stipulated timelines.
2. Challan Preparation:
- EPF Challan:
- Log in to the EPFO portal and select the ECR option.
- Enter the required details such as the wage month, employee count, and contribution details.
- Verify the challan and generate the TRRN (Temporary Return Reference Number).
- ESI Challan:
- Access the ESIC portal and log in with your credentials.
- Fill in the necessary information like the number of employees, wages paid, and contribution details.
- Verify the challan and make the payment online.
By following these steps diligently, you can ensure compliance with PF & ESI regulations and streamline the challan preparation process for your company.
From India, Gurugram
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1. Procedure for PF & ESI Deductions:
- PF Deduction:
- The Employee Provident Fund (EPF) is calculated at 12% of the employee's basic salary, and the employer contributes an equal amount.
- The Employee State Insurance (ESI) is calculated at 0.75% of the employee's gross salary, while the employer contributes 3.25%.
- The deductions are made monthly and deposited with the respective authorities.
- Process:
- Ensure the deductions are accurately calculated based on the employee's salary components.
- Generate a payslip reflecting the PF & ESI deductions for transparency.
- Submit the contributions to the EPF and ESI portals within the stipulated timelines.
2. Challan Preparation:
- EPF Challan:
- Log in to the EPFO portal and select the ECR option.
- Enter the required details such as the wage month, employee count, and contribution details.
- Verify the challan and generate the TRRN (Temporary Return Reference Number).
- ESI Challan:
- Access the ESIC portal and log in with your credentials.
- Fill in the necessary information like the number of employees, wages paid, and contribution details.
- Verify the challan and make the payment online.
By following these steps diligently, you can ensure compliance with PF & ESI regulations and streamline the challan preparation process for your company.
From India, Gurugram
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ESI deduction.doc
SALARY with out PF Deduction.xls