Respected Seniors, I am an HR Executive in a Pvt Ltd company, and this is my first job in HR. I lack practical knowledge about PF and ESIC. I am aware of the deduction percentages, but I desire to gain a comprehensive understanding of both deductions. Kindly assist me in resolving this issue.
From India, Delhi
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4From India, Delhi
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Understanding ESI Contributions
ESI is contributed from both sides, by the employee as well as the employer. It is calculated based on the gross salary per month, with a maximum ceiling of 15,000 Rs. per month. The contributions from both sides are as follows:
- **Employee Side** - 1.75% of gross/month
So, if the gross salary of an employee is 8,000/month, the ESI contribution would be 8,000 * 1.75% = 140 Rupees.
- **Employer Side** - 4.75% of gross/month
The ESI contribution would be 8,000 * 4.75% = 380 Rupees.
Understanding PF Contributions
Additionally, PF is also paid from both sides. Both the employer and the employee are required to contribute 12% of the basic salary. Out of this 12%, the employer's contribution involves 8.33% for the Pension fund, while the remaining 3.67% goes to the PF Fund itself.
Regards,
From India, New Delhi
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ESI is contributed from both sides, by the employee as well as the employer. It is calculated based on the gross salary per month, with a maximum ceiling of 15,000 Rs. per month. The contributions from both sides are as follows:
- **Employee Side** - 1.75% of gross/month
So, if the gross salary of an employee is 8,000/month, the ESI contribution would be 8,000 * 1.75% = 140 Rupees.
- **Employer Side** - 4.75% of gross/month
The ESI contribution would be 8,000 * 4.75% = 380 Rupees.
Understanding PF Contributions
Additionally, PF is also paid from both sides. Both the employer and the employee are required to contribute 12% of the basic salary. Out of this 12%, the employer's contribution involves 8.33% for the Pension fund, while the remaining 3.67% goes to the PF Fund itself.
Regards,
From India, New Delhi
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PF:
Account
A/C 1 (PF) - 12% (Employee's Share) + 3.67% + Amt. > 541 (Employer's Share)
A/C 2 (Admin Charges for PF) - 1.10% (Employer's Share)
A/C 10 (Pension Fund) - 8.33% Limit 541 (Employer's Share)
A/C 21 (EDLI) - 0.5% (Employer's Share)
A/C 22 (Admin Charges for EDLI) - 0.01% (Employer's Share)
Total Contribution is 12% Employee's + 13.61% Employer's = 25.61%
ESI:
1.75% (Employee's Share)
4.75% (Employer's Share)
** Employees in receipt of a daily average wage up to Rs.100/- are exempted from payment of contribution. Employers will, however, contribute their own share in respect of these employees.
From India, Kota
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Account
A/C 1 (PF) - 12% (Employee's Share) + 3.67% + Amt. > 541 (Employer's Share)
A/C 2 (Admin Charges for PF) - 1.10% (Employer's Share)
A/C 10 (Pension Fund) - 8.33% Limit 541 (Employer's Share)
A/C 21 (EDLI) - 0.5% (Employer's Share)
A/C 22 (Admin Charges for EDLI) - 0.01% (Employer's Share)
Total Contribution is 12% Employee's + 13.61% Employer's = 25.61%
ESI:
1.75% (Employee's Share)
4.75% (Employer's Share)
** Employees in receipt of a daily average wage up to Rs.100/- are exempted from payment of contribution. Employers will, however, contribute their own share in respect of these employees.
From India, Kota
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PF & ESI.zip
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