Hi friends,
This is Arunodaya pursuing MSW fianal year specializing in HRM at Loyola College.Can you please send me msgs how to calculate to deduct ESI, PF and Gratuity amount from total CTC.
Regards
Arunodaya
From India, Coimbatore
This is Arunodaya pursuing MSW fianal year specializing in HRM at Loyola College.Can you please send me msgs how to calculate to deduct ESI, PF and Gratuity amount from total CTC.
Regards
Arunodaya
From India, Coimbatore
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From India, Hyderabad
35From India, Hyderabad
PF - 12% on (basic salary+ d.a.) for employee contribution
PF - 12% on (basic salary+d.a) for employer contribution
ADMINISTRATION CHARGES 1.100 % on (basic salary+d.a)for employer contribution
E.D.L.I. CHARGES 0.500 % on (pension salary (Basic +da upto Rs.6500) for employer contribution
INSPECTION CHARGES 0.010 % on (basic salary+d.a)for employer contribution
FOR EXPLE ONE EMPLOYEE BASIC SALARY =20020 & DEARNESS ALL=3500
TOTAL WORKERS = 1
TOTAL SALARY = 23520.00
COVERED UNDER EPF = 1
SALARY = 23520.00
EPF = 2822.00
COVERED UNDER PENSION = 1
SALARY = 6500.00
SALARY (Excess) = 17020.00
PENSION = 541.00
NOT COVERED UNDER EPF = 0
SALARY =
NOT COVERED WITH PENSION = 0
SALARY =
WORKER SHARE EPF = 2822.00
EMPLOYER SHARE EPF = 2281.00
TOTAL = 5103.00
WORKER SHARE PENSION =
EMPLOYER SHARE PENSION = 541.00
TOTAL PENSION = 541.00
E.D.L.I. CHARGES 0.500 % = 33.00
ADMINISTRATION CHARGES 1.100 % = 259.00
INSPECTION CHARGES 0.010 % = 2.00
TOTAL TO BE DEPOSITED = 5938.00
From India, New Delhi
PF - 12% on (basic salary+d.a) for employer contribution
ADMINISTRATION CHARGES 1.100 % on (basic salary+d.a)for employer contribution
E.D.L.I. CHARGES 0.500 % on (pension salary (Basic +da upto Rs.6500) for employer contribution
INSPECTION CHARGES 0.010 % on (basic salary+d.a)for employer contribution
FOR EXPLE ONE EMPLOYEE BASIC SALARY =20020 & DEARNESS ALL=3500
TOTAL WORKERS = 1
TOTAL SALARY = 23520.00
COVERED UNDER EPF = 1
SALARY = 23520.00
EPF = 2822.00
COVERED UNDER PENSION = 1
SALARY = 6500.00
SALARY (Excess) = 17020.00
PENSION = 541.00
NOT COVERED UNDER EPF = 0
SALARY =
NOT COVERED WITH PENSION = 0
SALARY =
WORKER SHARE EPF = 2822.00
EMPLOYER SHARE EPF = 2281.00
TOTAL = 5103.00
WORKER SHARE PENSION =
EMPLOYER SHARE PENSION = 541.00
TOTAL PENSION = 541.00
E.D.L.I. CHARGES 0.500 % = 33.00
ADMINISTRATION CHARGES 1.100 % = 259.00
INSPECTION CHARGES 0.010 % = 2.00
TOTAL TO BE DEPOSITED = 5938.00
From India, New Delhi
Hi Frined, I would like to know whether gratuity is been calculated from Gross or Basic salary. Regards, Arunodaya
From India, Coimbatore
From India, Coimbatore
Dear Arun
For PF - Salary means Basic, DA, Cash value of any Food Allowance and any other allowance which is directly related with the cost of living of employees
Employees contribution will be 12% of their salary
Employer Contribution goes under 4 heads:
1. Employee Pension Scheme - 8.33% ofsalary or Rs. 541 whichever is lower. Out of the 8.33%, the amount above Rs. 541/- if any will go to provident fund
2. Provident Fund - 3.67% of salary. Here please note that the amount above 541/- will also be added
3. Employees Deposit Linked Insurance Scheme - Which is 1.10% of salary
4. Administrative Charges - which is .51%
Therefore altogether employer contribution comes to 13.61%
For ESI
Salary means Gross Salary including metro allowance but excluding laundry allowance, entertainment allowance etc.
Employee Contribution is - 1.75% of Salary rounded off to the next highest Ruppee. For eg. if 1.75% of gross salary is Rs. 52.10, then employee contribution will be Rs. 53
if the salary of an employee is more than 10,000 then we don't have to remit contribution for him towards ESI. But please note that remittances to ESI is counted as two contribution periods. ie April to September and October to March. If an employees salary is 9000 in April he has to remit ESI contribution. If in May he got a promotion and his salary in May is 11000 then also ESI should be deducted from him even though his salary is more than 10000. This should continue till the end of the contribution period ie up to September.
For Gratutity
Salary means Basic, DA, Cash value of any Food Allowance and any other allowance which is directly related with the cost of living of employees
It is paid to employees who had more than 5 years continuous service at the time of resignation, or to the employee at the time of his retirement, permanent disablement or death.
Calculation is Last drawn Salary * Number of years in Service * 15/26
Note that if an employee resigns after 5 years and 6 months, the number of years in service will be treated as 6 years. Otherwise, it will be treated as 5 years only
Hope this would be Ok for you. If for more details you may contact me at
From India, Kochi
For PF - Salary means Basic, DA, Cash value of any Food Allowance and any other allowance which is directly related with the cost of living of employees
Employees contribution will be 12% of their salary
Employer Contribution goes under 4 heads:
1. Employee Pension Scheme - 8.33% ofsalary or Rs. 541 whichever is lower. Out of the 8.33%, the amount above Rs. 541/- if any will go to provident fund
2. Provident Fund - 3.67% of salary. Here please note that the amount above 541/- will also be added
3. Employees Deposit Linked Insurance Scheme - Which is 1.10% of salary
4. Administrative Charges - which is .51%
Therefore altogether employer contribution comes to 13.61%
For ESI
Salary means Gross Salary including metro allowance but excluding laundry allowance, entertainment allowance etc.
Employee Contribution is - 1.75% of Salary rounded off to the next highest Ruppee. For eg. if 1.75% of gross salary is Rs. 52.10, then employee contribution will be Rs. 53
if the salary of an employee is more than 10,000 then we don't have to remit contribution for him towards ESI. But please note that remittances to ESI is counted as two contribution periods. ie April to September and October to March. If an employees salary is 9000 in April he has to remit ESI contribution. If in May he got a promotion and his salary in May is 11000 then also ESI should be deducted from him even though his salary is more than 10000. This should continue till the end of the contribution period ie up to September.
For Gratutity
Salary means Basic, DA, Cash value of any Food Allowance and any other allowance which is directly related with the cost of living of employees
It is paid to employees who had more than 5 years continuous service at the time of resignation, or to the employee at the time of his retirement, permanent disablement or death.
Calculation is Last drawn Salary * Number of years in Service * 15/26
Note that if an employee resigns after 5 years and 6 months, the number of years in service will be treated as 6 years. Otherwise, it will be treated as 5 years only
Hope this would be Ok for you. If for more details you may contact me at
From India, Kochi
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ESI-PF-Gratuity .xls
PF & ESI.zip
Presentation PF&ESI.ppt