Sir, My question is my basic salary is 6500 but my gross salary is 10374 (26 days) and my Pf Deduction of Rs 1244/-, it is correct or not. what is process of basic to gross salary
From India, Delhi
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From India, Delhi
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Dear Mr. Nitesh Barman,
You have explained the same in a very useful manner. I would like to make some corrections in the below-mentioned point. Instead of "employee," it should be "employer contribution," and the revised limit for the pension is 1250.00 instead of 541.00.
Employer Contribution - 6500*8.33% = 541.00, but this contribution should not be more than 1250.00 Rs.
From India, Bharuch
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You have explained the same in a very useful manner. I would like to make some corrections in the below-mentioned point. Instead of "employee," it should be "employer contribution," and the revised limit for the pension is 1250.00 instead of 541.00.
Employer Contribution - 6500*8.33% = 541.00, but this contribution should not be more than 1250.00 Rs.
From India, Bharuch
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PF is deducted on Basic salary i.e Basic + DA is Rs. 15000/- or less above that PF is not deducted/ optional effective from 1st January 2015.
1) Employee –12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) 2) Employer –13.36 % (of Basic + DA & Food concession allowance & retaining allowance, if any) [13.36% = 3.67 % PF + 8.33 % Pension Scheme + 0.85 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
2) EDLI - Employee deposit link insurance
A. The maximum ceiling limit of PF - Rs.15000/-from 01/09/2014 If the basic + DA exceeds 15000/- than the contributions is optional. Some company may have their own company policies.
B. Provident fund is calculated towards the employers is 13.61% 1. Employers Contribution 2.EPF A/c No.1 - 3.67% 3.EPF - Admin Charges - 1.1% 4.Pension Fund A/c No.10 - 8.33% 5.EDLI A/c No.21 - 0.5% 6.EDLI - Admin Charges - 0.01%
3) ESIC Calculation :
A. In this ESIC, it includes the medical benefit both for the employee and employer.
B. It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.21000/-p.m.
C. Employee side - 1.75% and Employer side - 4.75%.
D. So if the gross of an employee is 8000/- p.m. his contribution would be 8000*1.75% = 140/- Employer 8000*4.75% = 380/-
E. Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 21000/- gross per month will not be applicable under ESIC act. 2.
2. 10 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 21000/- or less per month. Apart from that there is a tax deduction. it includes the Income & professional tax.
4) CTC :
A. CTC means cost to the company. i.e .what are all the expenses incurred by the Company for any of its employee for a particular period (monthly/yearly)
B. Gross pay + employers pf+employers ESI + bonus = CTC
C. I.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
D. CTC is Cost to Company and the components are below :
E. Basic Salary
F. + House Rent Allowances
G. + Conveyance Allowance
H. + Children Education Allowances
I. +MOBILE REIMBURSHMENT
J. + Medical Allowances
K. + Additional Allowances
L. +LTA
M. +Employer contribution of PF
N. +Employer contribution towards ESI
O. +Total variable incentives
P. + Insurance Premium (in case of Group insurance)
5) Gratuity Calculation:
It’s been deposited @ 4.81% of Basic per month.
After completing 5 years of service one may claim Gratuity at the time of separation from the organization and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-
6) EPFO has cut the administrative fee charged from employers effective from 1st January 2015.
A. EPF Admin Charges
B. Existing Rate- 1.10 % of Total EPF Salary
C. New Rate - 0.85 % of Total EPF Salary
D. Minimum Rs 5 in case of Non Contributory Member
E. Minimum Rs 75 Per Month in case of non-functional establishment having no Contributory member
F. Minimum Rs 500 for Contributory Members
7) EDLI Admin Charges
A. Existing Rate – 0.01 % of Total EDLI Salary
B. New Rate – 0.01 % of Total EDLI Salary
C. Minimum Rs 2 in case of Non Contributory Member
D. Minimum Rs 25 Per Month in case of non-functional establishment having no Contributory member
E. Minimum Rs 200 for Contributory Members
Thanks Best Regards!!
Vijay Tiwari |
Mo. 9871838528
From India, Delhi
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1) Employee –12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) 2) Employer –13.36 % (of Basic + DA & Food concession allowance & retaining allowance, if any) [13.36% = 3.67 % PF + 8.33 % Pension Scheme + 0.85 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
2) EDLI - Employee deposit link insurance
A. The maximum ceiling limit of PF - Rs.15000/-from 01/09/2014 If the basic + DA exceeds 15000/- than the contributions is optional. Some company may have their own company policies.
B. Provident fund is calculated towards the employers is 13.61% 1. Employers Contribution 2.EPF A/c No.1 - 3.67% 3.EPF - Admin Charges - 1.1% 4.Pension Fund A/c No.10 - 8.33% 5.EDLI A/c No.21 - 0.5% 6.EDLI - Admin Charges - 0.01%
3) ESIC Calculation :
A. In this ESIC, it includes the medical benefit both for the employee and employer.
B. It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.21000/-p.m.
C. Employee side - 1.75% and Employer side - 4.75%.
D. So if the gross of an employee is 8000/- p.m. his contribution would be 8000*1.75% = 140/- Employer 8000*4.75% = 380/-
E. Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 21000/- gross per month will not be applicable under ESIC act. 2.
2. 10 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 21000/- or less per month. Apart from that there is a tax deduction. it includes the Income & professional tax.
4) CTC :
A. CTC means cost to the company. i.e .what are all the expenses incurred by the Company for any of its employee for a particular period (monthly/yearly)
B. Gross pay + employers pf+employers ESI + bonus = CTC
C. I.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
D. CTC is Cost to Company and the components are below :
E. Basic Salary
F. + House Rent Allowances
G. + Conveyance Allowance
H. + Children Education Allowances
I. +MOBILE REIMBURSHMENT
J. + Medical Allowances
K. + Additional Allowances
L. +LTA
M. +Employer contribution of PF
N. +Employer contribution towards ESI
O. +Total variable incentives
P. + Insurance Premium (in case of Group insurance)
5) Gratuity Calculation:
It’s been deposited @ 4.81% of Basic per month.
After completing 5 years of service one may claim Gratuity at the time of separation from the organization and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-
6) EPFO has cut the administrative fee charged from employers effective from 1st January 2015.
A. EPF Admin Charges
B. Existing Rate- 1.10 % of Total EPF Salary
C. New Rate - 0.85 % of Total EPF Salary
D. Minimum Rs 5 in case of Non Contributory Member
E. Minimum Rs 75 Per Month in case of non-functional establishment having no Contributory member
F. Minimum Rs 500 for Contributory Members
7) EDLI Admin Charges
A. Existing Rate – 0.01 % of Total EDLI Salary
B. New Rate – 0.01 % of Total EDLI Salary
C. Minimum Rs 2 in case of Non Contributory Member
D. Minimum Rs 25 Per Month in case of non-functional establishment having no Contributory member
E. Minimum Rs 200 for Contributory Members
Thanks Best Regards!!
Vijay Tiwari |
Mo. 9871838528
From India, Delhi
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Dear Mr. Nitesh,
How did it come to -13548? Please justify in detail.
ESIC:
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the employee and employer have to contribute to it.
3. The employee contribution percentage is 1.75%, and the employer contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, my gross for that month would be 13,548.00. Therefore, the calculation would be as follows:
- Employee Contribution: 1.75% of 13,548 = 238.00
- Employer Contribution: 4.75% of 13,548 = 644.00
Total the contributions, create a challan, and deposit the amount.
Thank you.
From India, Chennai
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How did it come to -13548? Please justify in detail.
ESIC:
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the employee and employer have to contribute to it.
3. The employee contribution percentage is 1.75%, and the employer contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, my gross for that month would be 13,548.00. Therefore, the calculation would be as follows:
- Employee Contribution: 1.75% of 13,548 = 238.00
- Employer Contribution: 4.75% of 13,548 = 644.00
Total the contributions, create a challan, and deposit the amount.
Thank you.
From India, Chennai
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respected nitesh sir, can u tell me how to make pf and esi challan
From India, Jaipur
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From India, Jaipur
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