Confusion about ESIC Calculation for a Gross Salary of Rs. 21,000
I am really confused about the calculation of a Rs. 21,000 gross salary for ESIC. Suppose I have a CTC of Rs. 280,000, which includes a PF employer share of Rs. 20,160 (Rs. 1,680 per month), making my gross salary Rs. 259,840 (Rs. 21,653 per month). My understanding is that to determine ESIC coverage, if (CTC - PF employer) is less than Rs. 21,000 per month, the person is eligible for ESIC.
Alternative Calculation Method for ESIC Eligibility
Another suggestion I have received is that if my CTC is Rs. 280,000, the PF employer contribution is Rs. 20,160, and the ESIC employer share is Rs. 11,782 (4.75% of gross), then my gross salary decreases to Rs. 248,052 (Rs. 20,671 per month). Since my gross, after considering the employer share of ESIC, is below Rs. 21,000, I would need to be registered under ESIC.
I would appreciate clarification on which method of calculation is correct. Thank you!
From India
Acknowledge(0)
Amend(0)
I am really confused about the calculation of a Rs. 21,000 gross salary for ESIC. Suppose I have a CTC of Rs. 280,000, which includes a PF employer share of Rs. 20,160 (Rs. 1,680 per month), making my gross salary Rs. 259,840 (Rs. 21,653 per month). My understanding is that to determine ESIC coverage, if (CTC - PF employer) is less than Rs. 21,000 per month, the person is eligible for ESIC.
Alternative Calculation Method for ESIC Eligibility
Another suggestion I have received is that if my CTC is Rs. 280,000, the PF employer contribution is Rs. 20,160, and the ESIC employer share is Rs. 11,782 (4.75% of gross), then my gross salary decreases to Rs. 248,052 (Rs. 20,671 per month). Since my gross, after considering the employer share of ESIC, is below Rs. 21,000, I would need to be registered under ESIC.
I would appreciate clarification on which method of calculation is correct. Thank you!
From India
Acknowledge(0)Amend(0)
ESI is on gross without considering ESI contribution. Your first calculation is the right one.
From India, Chennai
Acknowledge(1)
Amend(0)
56From India, Chennai
Acknowledge(1)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.
SALARY SHEET CALCULATION.xls
Salary calculation.doc