Dear Sir/Madam, I have gone through several postings and understood that ESI should be calculated on Gross salary. If I am not wrong, Gross salary = CTC - Employer PF Contribution - Employer ESI contribution. If we want to calculate Gross salary, we need to know the ESI Percentage, and for ESI calculation, we need to know Gross salary. So how can we arrive at a conclusion in the calculation? Kindly help me out on this.
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From India, Hyderabad
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From India, Hyderabad
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Dear Sir/Madam, I have gone through several postings and understood that ESI should be calculated on Gross salary. If I am not wrong, Gross salary = CTC - Employer PF Contribution - Employer ESI contribution. If we want to calculate Gross salary, we need to know the ESI Percentage, and for ESI calculation, we need to know Gross salary. So how can we arrive at a conclusion in calculation? Kindly help me out on this.
ESI Contribution Calculation
The ESI Contribution for the Employer is 4.75%, and that of the Employee is 1.75% of Gross Salary. You have to make a reverse calculation, i.e., CTC - Employer PF Contribution = sum arrived to be divided by 1.0475. Whatever you get is the gross salary.
Hope that you got your query resolved.
From India, Ahmadabad
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747ESI Contribution Calculation
The ESI Contribution for the Employer is 4.75%, and that of the Employee is 1.75% of Gross Salary. You have to make a reverse calculation, i.e., CTC - Employer PF Contribution = sum arrived to be divided by 1.0475. Whatever you get is the gross salary.
Hope that you got your query resolved.
From India, Ahmadabad
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Salary Sheet & PF PT Calculation & Challan.xls