Can any one help me in the calculation of ESI. 1. Whether it is calculated on basic or gross. 2. If it is on Gross, then whether washing allowance will be added on it? Plz kindly clarify me
From India, Bhubaneswar
11From India, Bhubaneswar
It is to be calculated on gross salary i.e Basic+DA+HRA+ any allowance which is paid as part of salary. B.Saikumar HR & LabourLaw Advisor Mumbai-
From India, Mumbai
From India, Mumbai
Anjana
If the washing allowance is paid as part of salary every month, in my view it shall rank for contribution.if it is paid as areimbursement of the xpenses incurred by an employee, it will not form part of the wage and will not count for contribution.
B.Saikumar
Mumbai
From India, Mumbai
If the washing allowance is paid as part of salary every month, in my view it shall rank for contribution.if it is paid as areimbursement of the xpenses incurred by an employee, it will not form part of the wage and will not count for contribution.
B.Saikumar
Mumbai
From India, Mumbai
Hi Anjana, as per the P.F circular dated 30-11-12, now other allowances excepting HRA/O.T /bonus etc will form part of the basic wages and thus count for contribution. Howver, it may not impact the employer's much since the wage limit for calculating cotribution remains the samei.e Rs.6500/- and the sthe employer's contribution, admin. chages, EDLi& inspecation charges can be frozen at Rs.6500/- only.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
Sai if the wage limit is not changed i.e. 6500 then i want to know whether that 6500 is from gross or after adding all other allowances with basic, and even after your fruitful answer my is not clear about new PF deduction, therefore plz kindly clarifying me.
From India, Bhubaneswar
From India, Bhubaneswar
Sai you wrote other allowances excepting HRA, O.T & Bonus etc will form part of the basic wages and thus count for contribution. i want to know whether this expenses will include with basic and the whole will be treated as basic or any thing else and also kindly clarify me about the 6500 limit.
From India, Bhubaneswar
From India, Bhubaneswar
Anjana
Now it has transpired from the news published in a news paper and the news emerging in this form during discussions on the same issue that the said circular of P.F is presntly kept in abeyanceThe P.F contribution has to be calcualted as per Sec.(6) of the P.F.Act on basic wages + Dearness allowance + retaining allowance + cash value of food concession, if any( This is not in practice now mostly)
Para 2(f) of the Provident Fund Scheme defines an 'excluded' employee as one whose pay(basic wages + DA+ retaining allowance + cash value of food concession) exceeds Rs.6500/-p.m. Thus it excludes an employee whose pay exceeds Rs.6500/- p.m from the purview of the Scheme.It means the employer needs to pay P.F contribution in respect of those employees whose Basic wages +DA +retaining allowance + cash value of food concession does not exceed Rs.6500/-p.m.
In respect of clubbing other allowances, there is lot of confusion now whether they have to be clubbed with basic wages or not in view of the P.F corcular being kept in abeyance and also in view of acse pending in Supreme Court. Please wait & watch and keep track of the developments for the present.
B.Saikumar
Mumbai
From India, Mumbai
Now it has transpired from the news published in a news paper and the news emerging in this form during discussions on the same issue that the said circular of P.F is presntly kept in abeyanceThe P.F contribution has to be calcualted as per Sec.(6) of the P.F.Act on basic wages + Dearness allowance + retaining allowance + cash value of food concession, if any( This is not in practice now mostly)
Para 2(f) of the Provident Fund Scheme defines an 'excluded' employee as one whose pay(basic wages + DA+ retaining allowance + cash value of food concession) exceeds Rs.6500/-p.m. Thus it excludes an employee whose pay exceeds Rs.6500/- p.m from the purview of the Scheme.It means the employer needs to pay P.F contribution in respect of those employees whose Basic wages +DA +retaining allowance + cash value of food concession does not exceed Rs.6500/-p.m.
In respect of clubbing other allowances, there is lot of confusion now whether they have to be clubbed with basic wages or not in view of the P.F corcular being kept in abeyance and also in view of acse pending in Supreme Court. Please wait & watch and keep track of the developments for the present.
B.Saikumar
Mumbai
From India, Mumbai
Dear Anjanatanaya, ESI contributions is to be paid on the Gross amount (ceiling is Rs. 15000/-) excluding Washing Allowance and conveyance reimbursement. G.K.Manjunath Sr. Manager-HR
From India, Bangalore
From India, Bangalore
Sai can u tell me what are the PF monthly return forms are submitted at the end of every month by each industries.
From India, Bhubaneswar
From India, Bhubaneswar
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ESI contribution rates lowering.pdf