Hi, I am a little bit confused about calculating the number of days for EPF/ESIC. Normally, we include all Sundays of a month in calculating EPF/ESIC. But what if somebody has worked for 13 days in a month and the month is of 31 days including 5 Sundays? Here, we will also include all Sundays, so the total working days of the employee will be taken as 13 + 5 = 18 days.
Or there is another way of calculating it.
From India, Delhi
3Or there is another way of calculating it.
From India, Delhi
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Dear Preeti, pls be clear your question. we are not fully understand your query......... pls provide full details for more clarification.
From India, Mumbai
From India, Mumbai
Hi,
I will explain my problem by example:
Take the example of December. It contains 31 days i.e., 26 + 5 (Sunday). In this scenario, if an employee has worked for 13 days, then what will be the total number of days for the calculation of PF?
So, the total days will be 13 + 5 (Sundays) = 18 days. Is there another way to calculate the total days of working?
Regards,
Preeti Shukla
From India, Delhi
I will explain my problem by example:
Take the example of December. It contains 31 days i.e., 26 + 5 (Sunday). In this scenario, if an employee has worked for 13 days, then what will be the total number of days for the calculation of PF?
So, the total days will be 13 + 5 (Sundays) = 18 days. Is there another way to calculate the total days of working?
Regards,
Preeti Shukla
From India, Delhi
Dear Preeti, i would like to know tht company provide leave to emp. Emp on probation or temporarily. u have putted LWP ????????????????? Can u provide us leave date of emp.
From India, Mumbai
From India, Mumbai
Dear Preeti,
Sunday is considered mandatory. An employee who worked before or after Sunday, Sunday is also calculated for PF/ESI. If an employee did not work on Saturday, Sunday, and Monday, making three days absent, Sunday cannot be calculated.
From India, Nellore
Sunday is considered mandatory. An employee who worked before or after Sunday, Sunday is also calculated for PF/ESI. If an employee did not work on Saturday, Sunday, and Monday, making three days absent, Sunday cannot be calculated.
From India, Nellore
Dear Chitanya,
Please ensure whether he/she is a confirmed employee or not.
If I am a confirmed employee in my office and I have taken a 3-day leave which includes Sunday as per your statement, but I have sufficient balance of EL/CL, then my PF should not be deducted.
If I am in the probation period and I am not eligible for leave, then the company will make LWP deductions from my salary, and in that case, PF should be deducted.
Thank you.
From India, Mumbai
Please ensure whether he/she is a confirmed employee or not.
If I am a confirmed employee in my office and I have taken a 3-day leave which includes Sunday as per your statement, but I have sufficient balance of EL/CL, then my PF should not be deducted.
If I am in the probation period and I am not eligible for leave, then the company will make LWP deductions from my salary, and in that case, PF should be deducted.
Thank you.
From India, Mumbai
Dear Chaitanya,
Here is a discussion on how to calculate PF or ESI. When considering this, we should be aware that employees are entitled to different types of leave such as EL, SL, and CL. These leaves need to be factored in when calculating the salary. Therefore, I am requesting Preeti to provide us with full details so that we can give a justified answer.
From India, Mumbai
Here is a discussion on how to calculate PF or ESI. When considering this, we should be aware that employees are entitled to different types of leave such as EL, SL, and CL. These leaves need to be factored in when calculating the salary. Therefore, I am requesting Preeti to provide us with full details so that we can give a justified answer.
From India, Mumbai
Dear Preethi,
As per my knowledge, if the employee has taken leave for the first 13 days of the month and if 2 Sundays appear in those 13 days, then the 2 Sundays are considered as leave and the rest 3 Sundays have to be considered as Week Off.
For example, if he/she has taken a leave from Monday to Saturday, then both the Sundays (prior to Monday and after Saturday) are considered as Week Off. In case he/she has taken a leave from Monday to the next Monday, then the Sunday in-between the 2 Mondays is considered as leave.
Hope I have made it clear.
Regards,
Sheeba
From India, Mysore
As per my knowledge, if the employee has taken leave for the first 13 days of the month and if 2 Sundays appear in those 13 days, then the 2 Sundays are considered as leave and the rest 3 Sundays have to be considered as Week Off.
For example, if he/she has taken a leave from Monday to Saturday, then both the Sundays (prior to Monday and after Saturday) are considered as Week Off. In case he/she has taken a leave from Monday to the next Monday, then the Sunday in-between the 2 Mondays is considered as leave.
Hope I have made it clear.
Regards,
Sheeba
From India, Mysore
Dear Preeti,
Assuming your organization works 6 days a week and taking December 2012 month as an example, please find my answer below.
Case 1 - If an employee worked from 1st of December 2012 to 15th December 2012 (13 working days), then you have to calculate only for 15 days.
Case 2: You need to provide the actual scenario of the case to provide the details. I mean when did the employee work and the days he/she has taken leave in December and how the leave is accounted for in the system. Based on the clear case, we may be able to provide the right answer.
Thanks and Regards,
Srinivas Marnade
From India, Hyderabad
Assuming your organization works 6 days a week and taking December 2012 month as an example, please find my answer below.
Case 1 - If an employee worked from 1st of December 2012 to 15th December 2012 (13 working days), then you have to calculate only for 15 days.
Case 2: You need to provide the actual scenario of the case to provide the details. I mean when did the employee work and the days he/she has taken leave in December and how the leave is accounted for in the system. Based on the clear case, we may be able to provide the right answer.
Thanks and Regards,
Srinivas Marnade
From India, Hyderabad
Consider only those days for which you are paying wages including paid holidays, Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Preethi,
It is so easy. See, try to mention the date of joining of the employee (if he/she is newly joined). If the employee is an existing employee, calculate based on the leaves provided to him. Be specific and clear.
Thank you.
From India, Bangalore
It is so easy. See, try to mention the date of joining of the employee (if he/she is newly joined). If the employee is an existing employee, calculate based on the leaves provided to him. Be specific and clear.
Thank you.
From India, Bangalore
There are two popular methods in India for calculating salary:
1) Total Month Days (with Sunday): This means if the salary is 3000 PM, then the per day salary would be 3000/30 (month days) = 100 Rs per day.
Now, let's say 15 days are present. We should cover till the last day including present Sundays, which means we have to add 2 or 3 Sundays.
Present = 15, Sunday = 2, total days = 17 x 100 = 1700 Rs.
In this method, some rules also apply. If somebody is absent on Saturday and Monday, then that Sunday will not be included. It is not practical to check every employee's Sunday, especially when dealing with a large number of employees.
2) Total days (without Sunday) method: I prefer this method. The Labor Department, ESIC, PF, leave encashment, and every department are also satisfied with this method.
In this method, if the salary is 3000 PM and the month's total days are 26, then the per day salary would be = 3000/26 = Rs 115.38.
Now, let's say there are 15 days present:
Present = 15
Any approved leave = 0
Any holiday = 0
Total days = 15
Gross salary is: 15 x 115.38 = 1730.00
If you compare this, as per method 1, the salary is 1700, and as per method 2, the salary is 1730. Why?
Because of Sunday. If you count 3 Sundays, the salary would be 1800.00. Every time, not every employee would be satisfied with the Sunday calculation.
That's why nowadays, big organizations are adopting method 2.
Simple and best. And approved by the Factory Act as well.
From India, Rajkot
1) Total Month Days (with Sunday): This means if the salary is 3000 PM, then the per day salary would be 3000/30 (month days) = 100 Rs per day.
Now, let's say 15 days are present. We should cover till the last day including present Sundays, which means we have to add 2 or 3 Sundays.
Present = 15, Sunday = 2, total days = 17 x 100 = 1700 Rs.
In this method, some rules also apply. If somebody is absent on Saturday and Monday, then that Sunday will not be included. It is not practical to check every employee's Sunday, especially when dealing with a large number of employees.
2) Total days (without Sunday) method: I prefer this method. The Labor Department, ESIC, PF, leave encashment, and every department are also satisfied with this method.
In this method, if the salary is 3000 PM and the month's total days are 26, then the per day salary would be = 3000/26 = Rs 115.38.
Now, let's say there are 15 days present:
Present = 15
Any approved leave = 0
Any holiday = 0
Total days = 15
Gross salary is: 15 x 115.38 = 1730.00
If you compare this, as per method 1, the salary is 1700, and as per method 2, the salary is 1730. Why?
Because of Sunday. If you count 3 Sundays, the salary would be 1800.00. Every time, not every employee would be satisfied with the Sunday calculation.
That's why nowadays, big organizations are adopting method 2.
Simple and best. And approved by the Factory Act as well.
From India, Rajkot
Hi,
Thank you all for your replies.
Pawandarda: My company adopts the second method that you have mentioned. Unfortunately, here no holidays are given in a month. I am asking, considering the second method as the calculation of salary, if an employee has worked for 13 days (excluding Sundays) in a month, what will be the total number of days for PF calculation?
@Nirav, there are no holidays for employees in the company.
Regards,
Preeti
From India, Delhi
Thank you all for your replies.
Pawandarda: My company adopts the second method that you have mentioned. Unfortunately, here no holidays are given in a month. I am asking, considering the second method as the calculation of salary, if an employee has worked for 13 days (excluding Sundays) in a month, what will be the total number of days for PF calculation?
@Nirav, there are no holidays for employees in the company.
Regards,
Preeti
From India, Delhi
Very simple.
Only the present days would be the total days, which means 13 days.
If your salary is 5000 and the total number of days in the month is 26, then 5000/26 = 192.30 per day salary.
Therefore, the gross salary would be: 13 x 192.30 = 2450.00, and the PF would be deducted on its basic salary.
From India, Rajkot
Only the present days would be the total days, which means 13 days.
If your salary is 5000 and the total number of days in the month is 26, then 5000/26 = 192.30 per day salary.
Therefore, the gross salary would be: 13 x 192.30 = 2450.00, and the PF would be deducted on its basic salary.
From India, Rajkot
Dear Preeti,
If your company adopted 2 method, then calculate PF and ESI on 13 days' salary.
For example:
Total Salary: 5000
Per day Salary: 192.30
Number of Working days: 13
Total Salary: 13 * 192.30 = 2450
12% PF on 2450 = 2450 * 12/100
ESI 1.75% on 2450 = 2450 * 1.75/100
Thank you.
From India, Mumbai
If your company adopted 2 method, then calculate PF and ESI on 13 days' salary.
For example:
Total Salary: 5000
Per day Salary: 192.30
Number of Working days: 13
Total Salary: 13 * 192.30 = 2450
12% PF on 2450 = 2450 * 12/100
ESI 1.75% on 2450 = 2450 * 1.75/100
Thank you.
From India, Mumbai
no. pf can deduct on basic salary. not on 2450.00 like if u have 60% of gross is basic as per your decided salary structure the pf would be : 2450*60%=1470.00 1470*12% pf rate=176.40 is pf amount.
From India, Rajkot
From India, Rajkot
Dear Pawandra, if basic is 1470 then rest of amount what would be?????????????????????????????/////////////
From India, Mumbai
From India, Mumbai
Dear Mr. Gandhi, Do you have any knowledge about salary structure,Basic and gross. If you have, you don’t need to ask. pf deducts on basic salary. esi deducts on gross salary thats it.
From India, Rajkot
From India, Rajkot
Dear Pawandarda,
As per the components of salary, I am explaining to you how to bifurcate salary:
Total Salary: 5000
Basic: 40% of 5000, i.e. 2000
HRA: 1000
Conveyance: 800
Medical: 1200
Total: 5000
PF: 12% on basic, amounting to 240
ESI: 1.75% on gross salary, totaling 87.5
I hope this breakdown helps clarify the salary structure for you.
Best regards,
[Your Name]
From India, Mumbai
As per the components of salary, I am explaining to you how to bifurcate salary:
Total Salary: 5000
Basic: 40% of 5000, i.e. 2000
HRA: 1000
Conveyance: 800
Medical: 1200
Total: 5000
PF: 12% on basic, amounting to 240
ESI: 1.75% on gross salary, totaling 87.5
I hope this breakdown helps clarify the salary structure for you.
Best regards,
[Your Name]
From India, Mumbai
Dear Preeti, yes you are right way as per the rules PF Gratuity to be calculate on Basic + DA.........
From India, Mumbai
From India, Mumbai
Dear Nirav,
I am not talking about the gratuity... I am talking about the deductions we make on a monthly basis. I always deduct 12% of Basic+DA based on the number of days the person is present.
Regards,
Preeti Shukla
From India, Delhi
I am not talking about the gratuity... I am talking about the deductions we make on a monthly basis. I always deduct 12% of Basic+DA based on the number of days the person is present.
Regards,
Preeti Shukla
From India, Delhi
Dear Preeti, i am understand your question about PF.your calculation on PF is in right.................................................................
From India, Mumbai
From India, Mumbai
Dear Preeti, now all your doubt have been cleared. but i would like to advice to that you need to improve knowledge about Payroll process.
From India, Mumbai
From India, Mumbai
Dear Nirav,
Thank you for your suggestion. I will definitely work on it. It has only been 4 months since I started in the HR Generalist role, so I have many doubts. The company I am working for did not have an HR department before, so you can understand the burden. However, I know that's not an excuse. I will surely try to learn more about the payroll process.
Regards,
Preeti
From India, Delhi
Thank you for your suggestion. I will definitely work on it. It has only been 4 months since I started in the HR Generalist role, so I have many doubts. The company I am working for did not have an HR department before, so you can understand the burden. However, I know that's not an excuse. I will surely try to learn more about the payroll process.
Regards,
Preeti
From India, Delhi
As per the internal circular of PF/ESIC inspector, basic + DA wages cannot be less than minimum wages. If above the minimum wages, not less than 55% of gross. This means minimum wages or 55% of gross, whichever is higher, is applicable. Failure to adhere to these basic rules may lead to objections from the PF and Labour departments and result in orders for balance payment. This issue has arisen numerous times in India.
Nowadays, the PF Department is online, enabling them to easily verify if basic wages are below the minimum wage threshold. Therefore, I urge everyone to follow government rules diligently to avoid any problems in the future.
From India, Rajkot
Nowadays, the PF Department is online, enabling them to easily verify if basic wages are below the minimum wage threshold. Therefore, I urge everyone to follow government rules diligently to avoid any problems in the future.
From India, Rajkot
Dear Preeti, I know your situation that i am giving you advice you must read Taxation book chapter Salary....................................
From India, Mumbai
From India, Mumbai
Srikanth !! She is using method 2, where sunday not to be added. pf would be on 13 days basic salary only.
From India, Rajkot
From India, Rajkot
Dear Ms. Preeti,
If an employee has worked for 13 days, then PF is calculated on a total of 13 + 2 w/off = 15 days because, as per the Weekly Holidays Act of 1942, every employee is eligible for one weekly holiday in the week after six days of working.
From India, Haldwani
If an employee has worked for 13 days, then PF is calculated on a total of 13 + 2 w/off = 15 days because, as per the Weekly Holidays Act of 1942, every employee is eligible for one weekly holiday in the week after six days of working.
From India, Haldwani
Dear Shrikanth,
If we take the 1st method also, how can it be 18 days? It will be 15 days, i.e., 15 + 2 (Sundays). How can we account for those Sundays for the weeks he has not worked? Please clarify.
Regards,
Preeti Shukla
From India, Delhi
If we take the 1st method also, how can it be 18 days? It will be 15 days, i.e., 15 + 2 (Sundays). How can we account for those Sundays for the weeks he has not worked? Please clarify.
Regards,
Preeti Shukla
From India, Delhi
Dear Preeti,
Don't create confusion for yourself. What system do you use for salary preparation? First, decide for yourself.
As per the statement of Pawandarda, if you are using the 2nd method, then Sunday is not calculated in the salary.
From India, Mumbai
Don't create confusion for yourself. What system do you use for salary preparation? First, decide for yourself.
As per the statement of Pawandarda, if you are using the 2nd method, then Sunday is not calculated in the salary.
From India, Mumbai
Hi Nirav,
I asked because I wanted to know if we choose the first method, then his reply was different from others. This response was also conveyed to me by a lawyer, so I inquired for the sake of my knowledge.
Regards,
Preeti Shukla
From India, Delhi
I asked because I wanted to know if we choose the first method, then his reply was different from others. This response was also conveyed to me by a lawyer, so I inquired for the sake of my knowledge.
Regards,
Preeti Shukla
From India, Delhi
Dear Preeti I would really appreciate that if you could correct me if i have misunderstood your query Regards, Srikanth .V
From India, Hyderabad
From India, Hyderabad
Hi sir/madam,
I want to know that when a company gets the PF Registration from EPFO, after its registration, the number of employees reduces from 20 to 8. Being an HR person, what should I do now that we have only one project and we do not need employees?
Please suggest.
From India, Patna
I want to know that when a company gets the PF Registration from EPFO, after its registration, the number of employees reduces from 20 to 8. Being an HR person, what should I do now that we have only one project and we do not need employees?
Please suggest.
From India, Patna
Section 1(5) of the EPF Act states, "An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty."
The EPF Act, once applicable, will continue even when the number falls below the prescribed limit.
Reference: Kottahala Handloom Weavers Industrial Coop. Society v. Enforcement Officer, 2008 LLR 744 (Ker HC)
Regards,
Suresh
From India, Bangalore
The EPF Act, once applicable, will continue even when the number falls below the prescribed limit.
Reference: Kottahala Handloom Weavers Industrial Coop. Society v. Enforcement Officer, 2008 LLR 744 (Ker HC)
Regards,
Suresh
From India, Bangalore
Preethi,
If any person works for 13 days, how many Sundays fall within those 13 days? For example, if the total days are 13, and the person has attended from day 1 to day 13, you can only count the Sundays that fall between days 1 and 13 (which may be 2 or 1). Therefore, the count could be 13 + 1 or 2. It's important to note that you cannot consider all Sundays in the month as working days.
Regards,
V K Rao
From India, Guntur
If any person works for 13 days, how many Sundays fall within those 13 days? For example, if the total days are 13, and the person has attended from day 1 to day 13, you can only count the Sundays that fall between days 1 and 13 (which may be 2 or 1). Therefore, the count could be 13 + 1 or 2. It's important to note that you cannot consider all Sundays in the month as working days.
Regards,
V K Rao
From India, Guntur
If the employee is on a monthly salary, you pay salary only for the number of days worked and pay EPF & ESI accordingly. If the 13th day is Saturday, you need not pay for Sunday. Also, if yours is a Factory because the Factories Act does not provide for wages for a weekly holiday. It provides for a holiday only. If yours is a commercial establishment, verify with the Shop & Commercial Establishment Act of your state. If that Act provides for a weekly holiday with wages if the employee has worked for all six days prior to the weekly off, then you have to pay for Sunday also.
VARGHESE MATHEW
Baseindia Consultants
Trivandrum 14
09961266966
From India, Thiruvananthapuram
VARGHESE MATHEW
Baseindia Consultants
Trivandrum 14
09961266966
From India, Thiruvananthapuram
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EPF ESIC AND PT calculation below and above 15000.xls