Does site allowance attract ESI and PF deduction? If we add the site allowance, which is being paid every month apart from the fixed gross salary, the monthly gross crosses the limit of 21,000. In that case, should we consider the ESI deduction?

And also, the PF wages excluding HRA are below 15,000. If we add the site allowance, the PF wages exceed 15,000. In that case, on which wages should the PF be considered?

From India, Gurgaon
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EPF - It doesn't matter what components you are providing to employees; it's a capped amount of 15,000, including all components. Hence, if an employee's gross pay is more than 15K, the deduction should be on 15K - 1800. If the gross pay is less than 15K, the deduction should be based on the actual amount.

ESIC - If the site allowance is a fixed monthly component as per the employee's CTC, which exceeds 21K per month, then the employee does not fall under the ESIC slab.

From India, Hyderabad
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Site allowance is over and above the fixed CTC. The fixed CTC is below 21,000 per month. If the site allowance is added, the monthly gross salary is above 21,000. In that case, is the ESI deduction required to be continued.
From India, Gurgaon
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