Could anybody please confirm what is the amount to be calculated for PF, EPS & ESI i.e Whether we have to consider only the BASIC amount of th e Salary for calculation or any other Salary Head to be added to BASIC.
What is the minimum wage for calculating ESI
From India, Madras
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What is the minimum wage for calculating ESI
From India, Madras
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Mr. Shankar Ganesh,
You need to learn more on PF & ESI.
PF Wages means Basic + DA+ Food subsidy+leave encashment(if paid). On PF wages, employee contribute 12% and employer also contributed 12%. The employer contribution splited into PF 3.67% and Pension 8.33%. The PF wages ceiling upto Rs.6500/-.
ESIC wages means basic+DA+allowances+overtime. But Conveyance should not considered. the ESI revised limit Rs.10,000/-. the employee contributed 1.75% and employer contributed 4.75% on total ESI wages.
The minimum wages also attract to ESI deduction.
regs,
Bhushan Dahanukar
From India, Mumbai
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17You need to learn more on PF & ESI.
PF Wages means Basic + DA+ Food subsidy+leave encashment(if paid). On PF wages, employee contribute 12% and employer also contributed 12%. The employer contribution splited into PF 3.67% and Pension 8.33%. The PF wages ceiling upto Rs.6500/-.
ESIC wages means basic+DA+allowances+overtime. But Conveyance should not considered. the ESI revised limit Rs.10,000/-. the employee contributed 1.75% and employer contributed 4.75% on total ESI wages.
The minimum wages also attract to ESI deduction.
regs,
Bhushan Dahanukar
From India, Mumbai
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Dear Mr. bhushan dahanukar,,PF Calculates is doing on Basic + DA only, No need to include leave encashment and food Food subsidy.Under ESI deduct on gross salary (gross salary means basic+DA+HRA+Convenience+Special Allowance) all components comeing under gross salary. you must deduct on gross salary.RegardsSrinivas B
From India, Hyderabad
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From India, Hyderabad
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I am attaching a file containing the details of ESI wages........ Just go through it........
From India, Delhi
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From India, Delhi
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Hi Friends,
Can anybody clarify my following queries:
1) How do I calculate the monthly salary of Rs. 15,000/- in the case of daily rate wages? What is the rule applicable for absenteeism? For example, if a person works 30/31 days in a month, they will exceed the monthly salary of Rs. 15,000/-. If he/she is absent for even one day, their salary will be below Rs. 15,000/-. In such a case, are they eligible for ESIC deduction or not?
2) An employee was de-covered from ESIC Coverage from October-12 to January-13 as his salary was more than Rs. 15,000/-. However, in the month of Feb-13, he only receives 28 days' salary, which is less than Rs. 15,000/-. What are the rules applicable as per the ESIC Act, 1948? Will the employee be subject to ESIC deduction or not?
Regards,
Sudhakar M. Acharya
From India, Mumbai
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Can anybody clarify my following queries:
1) How do I calculate the monthly salary of Rs. 15,000/- in the case of daily rate wages? What is the rule applicable for absenteeism? For example, if a person works 30/31 days in a month, they will exceed the monthly salary of Rs. 15,000/-. If he/she is absent for even one day, their salary will be below Rs. 15,000/-. In such a case, are they eligible for ESIC deduction or not?
2) An employee was de-covered from ESIC Coverage from October-12 to January-13 as his salary was more than Rs. 15,000/-. However, in the month of Feb-13, he only receives 28 days' salary, which is less than Rs. 15,000/-. What are the rules applicable as per the ESIC Act, 1948? Will the employee be subject to ESIC deduction or not?
Regards,
Sudhakar M. Acharya
From India, Mumbai
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Dear Friends,
My question is "for daily rated wage system" i.e.
1) How to treat absenteeism while calculating ESIC salary of Rs.15000/-? For example, Workman A worked for 31 days in Jan-13 and received a monthly salary of Rs.15500/-, while Workman B worked only 28 days and got a salary of Rs. 14000/- only. In this case, Workman B is eligible for ESIC Deduction. In my view, he should be de-covered from ESIC since if he had worked for 31 days, his salary would have been Rs. 15500/-
2) Similarly, in the month Feb-13, for instance, Workman A will receive only 28 days' salary, i.e., Rs.14000/-, which is below Rs.15000/-. Is Workman A still eligible for ESIC deductions?
Nothing has been mentioned in the Act. The act specifies the eligible salary per month for ESIC deduction is Rs.15000/-.
Please clarify.
Regards, Sudhakar M. Acharya.
From India, Mumbai
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My question is "for daily rated wage system" i.e.
1) How to treat absenteeism while calculating ESIC salary of Rs.15000/-? For example, Workman A worked for 31 days in Jan-13 and received a monthly salary of Rs.15500/-, while Workman B worked only 28 days and got a salary of Rs. 14000/- only. In this case, Workman B is eligible for ESIC Deduction. In my view, he should be de-covered from ESIC since if he had worked for 31 days, his salary would have been Rs. 15500/-
2) Similarly, in the month Feb-13, for instance, Workman A will receive only 28 days' salary, i.e., Rs.14000/-, which is below Rs.15000/-. Is Workman A still eligible for ESIC deductions?
Nothing has been mentioned in the Act. The act specifies the eligible salary per month for ESIC deduction is Rs.15000/-.
Please clarify.
Regards, Sudhakar M. Acharya.
From India, Mumbai
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Dear Mr. V. Srikanth,
Thank you very much for the information. However, sir, my query is totally different.
I know the eligibility salary for ESIC is Rs. 15,000/- and the contribution period is from April to September and October to March.
Even if a worker is once covered in the months of April or October, irrespective of wages, whether they are more than Rs. 15,000 or less than that, the employer should deduct the ESIC. There are no issues for those workers who are paid monthly.
The issue arises for workers who are paid on a daily basis, where they receive wages for the number of days worked in a month. If a worker works for the full month, i.e., 26 days (excluding Sundays), they will earn wages exceeding Rs. 15,000 and will be out of ESIC coverage. However, if a worker is absent for 2 days and receives wages for only 24 days, their earnings will be below Rs. 15,000. My question is how should such a worker be treated? Is the employer obligated to deduct ESIC for this worker, or will they be considered out of ESI coverage since if they had worked for 26 days, their salary would have exceeded Rs. 15,000?
Moreover, from October 2012 to January 2013, most of our workers earned wages exceeding Rs. 15,000 as they worked for 26/27 days (excluding Sundays) and were out of ESIC coverage. However, in this month, February 2013, with only 28 days, the workers will receive wages for 24 days only, which will be less than Rs. 15,000. My question here is, should they be enrolled for ESIC or not?
Kindly advise me.
Regards,
Sudhakar M. Acharya
From India, Mumbai
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Thank you very much for the information. However, sir, my query is totally different.
I know the eligibility salary for ESIC is Rs. 15,000/- and the contribution period is from April to September and October to March.
Even if a worker is once covered in the months of April or October, irrespective of wages, whether they are more than Rs. 15,000 or less than that, the employer should deduct the ESIC. There are no issues for those workers who are paid monthly.
The issue arises for workers who are paid on a daily basis, where they receive wages for the number of days worked in a month. If a worker works for the full month, i.e., 26 days (excluding Sundays), they will earn wages exceeding Rs. 15,000 and will be out of ESIC coverage. However, if a worker is absent for 2 days and receives wages for only 24 days, their earnings will be below Rs. 15,000. My question is how should such a worker be treated? Is the employer obligated to deduct ESIC for this worker, or will they be considered out of ESI coverage since if they had worked for 26 days, their salary would have exceeded Rs. 15,000?
Moreover, from October 2012 to January 2013, most of our workers earned wages exceeding Rs. 15,000 as they worked for 26/27 days (excluding Sundays) and were out of ESIC coverage. However, in this month, February 2013, with only 28 days, the workers will receive wages for 24 days only, which will be less than Rs. 15,000. My question here is, should they be enrolled for ESIC or not?
Kindly advise me.
Regards,
Sudhakar M. Acharya
From India, Mumbai
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