Hi Satish, Yes, ESIC is applicable on Gross salary & arrears amount comes in gross salary.but, ESIC is not applicable on Washing allow. So, ESIC is applicable on arrears amount also. Regards,
From India, Mumbai
From India, Mumbai
Dear Mr. Swar,
Can you suggest to me the PF deduction on the minimum basic (basic + DA) Delhi minimum wages? The basic + DA is 3934. I can deduct PF at 2934, 2800, or 3934. Is it wrong, or is it right?
Thanks & Regards,
Sandy
From India, New Delhi
Can you suggest to me the PF deduction on the minimum basic (basic + DA) Delhi minimum wages? The basic + DA is 3934. I can deduct PF at 2934, 2800, or 3934. Is it wrong, or is it right?
Thanks & Regards,
Sandy
From India, New Delhi
Hi Satish,
Yes, ESIC is applicable on gross salary & arrears amount that comes in the gross salary. However, ESIC is not applicable on washing allowance. If the gross salary is not more than 10,000/-, ESIC will be applicable. Therefore, ESIC is also applicable on arrears amount.
Regards,
From India, Mumbai
Yes, ESIC is applicable on gross salary & arrears amount that comes in the gross salary. However, ESIC is not applicable on washing allowance. If the gross salary is not more than 10,000/-, ESIC will be applicable. Therefore, ESIC is also applicable on arrears amount.
Regards,
From India, Mumbai
Yes, ESI is applicable on arrear of person whose salary is less then equal to Rs. 10,000/- Regards Pankaj Chandan
From India, New delhi
From India, New delhi
Dear all,
Please advise me on whether ESIC is deducted on arrear amounts.
Regards,
Satish
---
Not sure what you are referring to by "Arrears." If this concerns amounts withheld, accounted for, and entered in the Payslip, which are now being paid, then I assume ESI deductions have already been applied.
If this relates to a wage revision or an additional amount being paid, we may need to review the headers and the accounting system. In the case of a wage revision, most calculations will be based on Basic and DA, thus attracting ESI deductions. However, if the revision pertains to allowances such as washing allowance for uniformed staff, which are exempted, ESI payments may not be necessary.
From India, Madras
Please advise me on whether ESIC is deducted on arrear amounts.
Regards,
Satish
---
Not sure what you are referring to by "Arrears." If this concerns amounts withheld, accounted for, and entered in the Payslip, which are now being paid, then I assume ESI deductions have already been applied.
If this relates to a wage revision or an additional amount being paid, we may need to review the headers and the accounting system. In the case of a wage revision, most calculations will be based on Basic and DA, thus attracting ESI deductions. However, if the revision pertains to allowances such as washing allowance for uniformed staff, which are exempted, ESI payments may not be necessary.
From India, Madras
Hi all,
Can anyone suggest how to handle ESI deductions? Should Allowances (Conveyance, Medical Reimbursements, Food Coupons, which are part of CTC) be included when calculating deductions from the gross salary?
I would appreciate an early reply. Thanks in advance.
From India, Madras
Can anyone suggest how to handle ESI deductions? Should Allowances (Conveyance, Medical Reimbursements, Food Coupons, which are part of CTC) be included when calculating deductions from the gross salary?
I would appreciate an early reply. Thanks in advance.
From India, Madras
Dear Satish,
Yes, you have to deduct the PF/ESIC and also Profession Tax when there is an arrears payment due to the revision of employees' salaries based on your revised salary. However, you have to take care of those employees who cross the limit of Rs. 10,000.
Suppose your salary revision is declared in June and you have to give effect from April onwards. Now, if an employee was drawing a salary of Rs. 8000 gross from April and due to the revision, his salary has crossed the limit of Rs. 10,000, you have to deduct ESIC payment on Rs. 10,000 up to September. After the payment of September, you cannot deduct his ESIC.
We have to submit our ESIC returns for Apr-Sept in the month of October and for Oct-Mar in the month of April. You cannot withdraw any member in between these half-yearly returns. You have to deduct his contribution till the half-yearly return.
Vinay Shedge
Yes, you have to deduct the PF/ESIC and also Profession Tax when there is an arrears payment due to the revision of employees' salaries based on your revised salary. However, you have to take care of those employees who cross the limit of Rs. 10,000.
Suppose your salary revision is declared in June and you have to give effect from April onwards. Now, if an employee was drawing a salary of Rs. 8000 gross from April and due to the revision, his salary has crossed the limit of Rs. 10,000, you have to deduct ESIC payment on Rs. 10,000 up to September. After the payment of September, you cannot deduct his ESIC.
We have to submit our ESIC returns for Apr-Sept in the month of October and for Oct-Mar in the month of April. You cannot withdraw any member in between these half-yearly returns. You have to deduct his contribution till the half-yearly return.
Vinay Shedge
Dear Sridhar,
ESIC is deducted on Gross Salary, not on CTC. Contributions are as follows: Employer 4.75%, Employee 1.75%. ESIC has to be deducted for those employees whose salary is below Rs. 10,000.
Vinay Shedge
ESIC is deducted on Gross Salary, not on CTC. Contributions are as follows: Employer 4.75%, Employee 1.75%. ESIC has to be deducted for those employees whose salary is below Rs. 10,000.
Vinay Shedge
Hello,
I am Sathish, working as an HR Executive in pharmaceutical manufacturing. We have Marketing field employees working all over India. How can I deduct ESI, and how do they benefit in their hometown? If I deduct ESI, where should I remit it? Can anyone please help me and inform me about non-implemented ESI areas in India?
Regards,
N. Sathish
From India, Madras
I am Sathish, working as an HR Executive in pharmaceutical manufacturing. We have Marketing field employees working all over India. How can I deduct ESI, and how do they benefit in their hometown? If I deduct ESI, where should I remit it? Can anyone please help me and inform me about non-implemented ESI areas in India?
Regards,
N. Sathish
From India, Madras
Dear Nagi, But a compnay has diduct pf on 2600, 2934, etc. how i can suggest him, he will be diduct pf on minimum basic, he want proof of pf diduct of minimum basic
From India, New Delhi
From India, New Delhi
You are right Mr. Satish Arrears always calculated in gross salary. But Pl.See Gross Salary should not be more than Rs. 10000 Pm. Subhash Sharma Mgr. (P & A)
From India, Delhi
From India, Delhi
Dear Friends,
For your information, we are adding the travel reimbursement for our sales employees. In some months, our employees are receiving more than 10,000/- as gross salary. We are calculating the ESI amount inclusive of the travel reimbursement. I want to know whether the travel reimbursement has to be included when calculating the ESI amount.
Thank you.
From India, Madras
For your information, we are adding the travel reimbursement for our sales employees. In some months, our employees are receiving more than 10,000/- as gross salary. We are calculating the ESI amount inclusive of the travel reimbursement. I want to know whether the travel reimbursement has to be included when calculating the ESI amount.
Thank you.
From India, Madras
if it is possible, please send me that Govt notification that PF should be deducted on minimum wages i.e. on 3934.or try to explain in details.
From India, Ahmadabad
From India, Ahmadabad
Hello Sridhar,
ESI will be deducted from the Gross salary, which includes Basic, HRA, Conveyance allowance, and Special Allowance if any. Fooding & Medical Reimbursement will be excluded. Also, the Gross Salary must be less than 10,000.
Regards,
Sangeeta
From India, Calcutta
ESI will be deducted from the Gross salary, which includes Basic, HRA, Conveyance allowance, and Special Allowance if any. Fooding & Medical Reimbursement will be excluded. Also, the Gross Salary must be less than 10,000.
Regards,
Sangeeta
From India, Calcutta
Dear pal,
If you provide your salary structure, deductions of P.F. & E.S.I. can be determined. For example, PF will be deducted on Basic Salary + D.A. + Cash equivalent to food grain supply, whereas E.S.I. can be deducted on Gross Salary. It depends on the salary components whether they will form Gross Salary or not. For instance, Conveyance will not be included in Gross Salary.
For any queries, please feel free to send them to my email ID: [sathish.hr1975@rediffmail.com](mailto:sathish.hr1975@rediffmail.com).
Regards,
P. Sathish Kumar
91-9885700350
From India, Jaipur
If you provide your salary structure, deductions of P.F. & E.S.I. can be determined. For example, PF will be deducted on Basic Salary + D.A. + Cash equivalent to food grain supply, whereas E.S.I. can be deducted on Gross Salary. It depends on the salary components whether they will form Gross Salary or not. For instance, Conveyance will not be included in Gross Salary.
For any queries, please feel free to send them to my email ID: [sathish.hr1975@rediffmail.com](mailto:sathish.hr1975@rediffmail.com).
Regards,
P. Sathish Kumar
91-9885700350
From India, Jaipur
Dear Sridhar,
Your query is correct. The allowances that you have mentioned will not form the Gross Salary. Additionally, Entertainment Allowance, Washing Allowance, Other Reimbursements, and any other allowance that will be paid at intervals exceeding two months will not form the Gross Salary.
From India, Jaipur
Your query is correct. The allowances that you have mentioned will not form the Gross Salary. Additionally, Entertainment Allowance, Washing Allowance, Other Reimbursements, and any other allowance that will be paid at intervals exceeding two months will not form the Gross Salary.
From India, Jaipur
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