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Vasant Nair
Hello, Can anyone tell me when the salary of any employee is 14000/- per month, then is ESI deducted or not? What is the maximum limit of ESI? Does it also differ from company to company, meaning is it different in IT than in others? Also, please tell me the amount of PF deduction.
From India, Mumbai
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92Vasant Nair
Hello, Can anyone tell me when the salary of any employee is 14000/- per month, then is ESI deducted or not? What is the maximum limit of ESI? Does it also differ from company to company, meaning is it different in IT than in others? Also, please tell me the amount of PF deduction.
From India, Mumbai
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Dear Arvind,
Please review the following information, which I hope will be helpful to you:
1. Basic Salary – This component amount will be calculated as 50% of the CTC. This percentage will vary from company to company, with a minimum of 30% and a maximum of 60%, depending on company norms.
2. HRA – It will be 50% of the basic salary in Metro Cities and 40% in Non-Metro Cities. This amount is fixed.
3. Conveyance Allowance – Rs. 800 per month is exempted (Rs. 9,600 per annum); any amount above Rs. 800 is taxable.
4. Medical Allowance – Rs. 1,250 per month (Rs. 15,000 per annum) is fixed and fully taxable.
5. Special Allowance – This is the balancing figure of the CTC.
Regards,
Jai
From India, Bengaluru
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Please review the following information, which I hope will be helpful to you:
1. Basic Salary – This component amount will be calculated as 50% of the CTC. This percentage will vary from company to company, with a minimum of 30% and a maximum of 60%, depending on company norms.
2. HRA – It will be 50% of the basic salary in Metro Cities and 40% in Non-Metro Cities. This amount is fixed.
3. Conveyance Allowance – Rs. 800 per month is exempted (Rs. 9,600 per annum); any amount above Rs. 800 is taxable.
4. Medical Allowance – Rs. 1,250 per month (Rs. 15,000 per annum) is fixed and fully taxable.
5. Special Allowance – This is the balancing figure of the CTC.
Regards,
Jai
From India, Bengaluru
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Dear,
If a person's gross salary, excluding his food allowance and any ex-gratia/incentive payment, is more than Rs. 15,000/- per month (i.e., Rs. 15,001 and above), then the ESI is not applicable. Food/tea/snacks provided to an employee will not form a part of his salary. Food subsidy and performance-linked compensation are not wages under the EPF Act.
Regional Provident Fund Commissioner, T.N. & Pondicherry State Employees' Provident Fund Organisation vs. Wipro Ltd. & Anr. 2009 LLR 816 (Madras H.C.); 2009 LLR 416.
With warm regards,
S. Bhaskar
9099024667
From India, Kumbakonam
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If a person's gross salary, excluding his food allowance and any ex-gratia/incentive payment, is more than Rs. 15,000/- per month (i.e., Rs. 15,001 and above), then the ESI is not applicable. Food/tea/snacks provided to an employee will not form a part of his salary. Food subsidy and performance-linked compensation are not wages under the EPF Act.
Regional Provident Fund Commissioner, T.N. & Pondicherry State Employees' Provident Fund Organisation vs. Wipro Ltd. & Anr. 2009 LLR 816 (Madras H.C.); 2009 LLR 416.
With warm regards,
S. Bhaskar
9099024667
From India, Kumbakonam
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SALARY with out PF Deduction.xls
PF Coverage Salary Component under New PF Rule.pdf