Hi
I have doubt in ESI,
In my company, my salary break up is given as below.
Basic 6210
HRA 2760
Conveyance 2960
Telephone 500
Gross 12430
Compan's contri PF 780
Compan's contri ESI 590
Annual performance 14400 1200
Compenstation 15000
My Question as follow
1) Is ESI and PF is included in Gross?
2) Is ESI deductible if employee Gross salary more than 15000 per month?
3) Please answer me with correct amount required for deduction
Thank you
From India, Chennai
I have doubt in ESI,
In my company, my salary break up is given as below.
Basic 6210
HRA 2760
Conveyance 2960
Telephone 500
Gross 12430
Compan's contri PF 780
Compan's contri ESI 590
Annual performance 14400 1200
Compenstation 15000
My Question as follow
1) Is ESI and PF is included in Gross?
2) Is ESI deductible if employee Gross salary more than 15000 per month?
3) Please answer me with correct amount required for deduction
Thank you
From India, Chennai
Dear Gajavivek,
It seem to your PF calculation is wrong, company contribution is show as higher side, it is calculated on 6500/- not on actual..
PF calculated on BA + DA
ESIC calculated on gross salary (Including any incentive, OT, performance pay paid along with salary in any prescribed month)
From India, Mumbai
206It seem to your PF calculation is wrong, company contribution is show as higher side, it is calculated on 6500/- not on actual..
PF calculated on BA + DA
ESIC calculated on gross salary (Including any incentive, OT, performance pay paid along with salary in any prescribed month)
From India, Mumbai
Sir,
1 Contribution under Employees' State Insurance Act, 1948 on total wages of Rs. 12430/- per month works out to Rs. 218/- (employees' share @ 1.75%) and employers' share @ Rs. 4.75% as Rs. 591/- i.e. total it works out to Rs. 809/- . Employees' share of contribution as well as employers' share of contributions both are to be rounded to next higher multiple of one rupee.
2. Employer cannot deduct his share of contribution from total wages of employee i.e. from Rs. 12430/- . But if the employer is making another calculations to assess the total expenses on any employee, then it is his own outlook and in my opinion, there is nothing wrong in calculating total liability in respect of any employee.
3. You have not mentioned as to what is "Annual Performance Compensation". In case, it is paid yearly and is just like annual bonus, then in my opinion, it is not part of wages and contribution under ESI Act, 1948 is not payable on said 'Annual Performance Compensation".
From India, Noida
1 Contribution under Employees' State Insurance Act, 1948 on total wages of Rs. 12430/- per month works out to Rs. 218/- (employees' share @ 1.75%) and employers' share @ Rs. 4.75% as Rs. 591/- i.e. total it works out to Rs. 809/- . Employees' share of contribution as well as employers' share of contributions both are to be rounded to next higher multiple of one rupee.
2. Employer cannot deduct his share of contribution from total wages of employee i.e. from Rs. 12430/- . But if the employer is making another calculations to assess the total expenses on any employee, then it is his own outlook and in my opinion, there is nothing wrong in calculating total liability in respect of any employee.
3. You have not mentioned as to what is "Annual Performance Compensation". In case, it is paid yearly and is just like annual bonus, then in my opinion, it is not part of wages and contribution under ESI Act, 1948 is not payable on said 'Annual Performance Compensation".
From India, Noida
Sir,
I may further clarify that the rounding of the employers' share of contribution under ESI Act is not to be done individually for all employees, but to be done at the time of preparing the monthly challan for payment and on total coverable wages of all covered/coverable. Therefore, the employer share of contribution Rs. 590/- (on your coverable wages) under above Act is correct.
From India, Noida
I may further clarify that the rounding of the employers' share of contribution under ESI Act is not to be done individually for all employees, but to be done at the time of preparing the monthly challan for payment and on total coverable wages of all covered/coverable. Therefore, the employer share of contribution Rs. 590/- (on your coverable wages) under above Act is correct.
From India, Noida
Dear Gajavivek,
1) Since your basic amount is less than Rs.6500/-, PF has to be calculated on actual Basic amount. Please check with your HR.
ESIC & PF is not a part of Gross. It is a part of CTC.
2) ESIC limit is Rs.15000/- so whose gross is less than 15000/- only they are eligible for ESIC.
3) Gross - 12430/-
Emp.ESIC @1.75% - 218/-
Emp.PF @12% - 745/- (Basic*12%)
other deduction if any
Net Payable -Rs.11467/-
From India
1) Since your basic amount is less than Rs.6500/-, PF has to be calculated on actual Basic amount. Please check with your HR.
ESIC & PF is not a part of Gross. It is a part of CTC.
2) ESIC limit is Rs.15000/- so whose gross is less than 15000/- only they are eligible for ESIC.
3) Gross - 12430/-
Emp.ESIC @1.75% - 218/-
Emp.PF @12% - 745/- (Basic*12%)
other deduction if any
Net Payable -Rs.11467/-
From India
Sir, I have one more doubt, If I am getting Gross Salary of more than Rs10,000/- so I am not eligible for ESI Deduction. Is it wright or Wrong. Please Explain
From India, Chennai
From India, Chennai
Hi Anonymous,
It seems that you have not read the trailing mail of Geetha N where it has been clearly mentioned that "ESIC limit is Rs.15000/- so whose gross is less than 15000/- only they are eligible for ESIC". Now coming to your query, though presently you are getting Rs 10,000/- per month, you are eligible for ESI contribution deduction and you will be continued till your salary reaches above 15,000/- per month.
BS Kalsi
Member since Aug 2011
From India, Mumbai
It seems that you have not read the trailing mail of Geetha N where it has been clearly mentioned that "ESIC limit is Rs.15000/- so whose gross is less than 15000/- only they are eligible for ESIC". Now coming to your query, though presently you are getting Rs 10,000/- per month, you are eligible for ESI contribution deduction and you will be continued till your salary reaches above 15,000/- per month.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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ESI deduction.doc
Salary Break up - After deduction.xls
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf