I am really confused as to calculation of 21000 gross salary for ESIC.
Suppose, I have a CTC of Rs. 280,000, which includes PF employer share Rs. 20160 (1680 per month) and hence my gross being 259840 (21653/month). Now my understanding of deciding whether a person is covered under ESIC is, if (CTC - PF employer) < 21000/month, then the person will be eligible for ESIC.
What the other suggestion I have received is, if my CTC is Rs. 280000, PF employer is Rs. 20160 and ESIC employer share is Rs. 11782 (4.75% of gross), so my gross drops to Rs. 248052 (20671/month), now since my gross after considering employer share of ESIC is below 21000, I will have to be registered under ESIC.
Kindly help as to which method of calculation is correct. Thanks!!
From India
Suppose, I have a CTC of Rs. 280,000, which includes PF employer share Rs. 20160 (1680 per month) and hence my gross being 259840 (21653/month). Now my understanding of deciding whether a person is covered under ESIC is, if (CTC - PF employer) < 21000/month, then the person will be eligible for ESIC.
What the other suggestion I have received is, if my CTC is Rs. 280000, PF employer is Rs. 20160 and ESIC employer share is Rs. 11782 (4.75% of gross), so my gross drops to Rs. 248052 (20671/month), now since my gross after considering employer share of ESIC is below 21000, I will have to be registered under ESIC.
Kindly help as to which method of calculation is correct. Thanks!!
From India
ESI is on gross without considering ESI contribution. Your first calculation is the right one.
From India, Chennai
55From India, Chennai
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