I am confused about ESI and PF calculation of working days.

When we do the calculation for ESI and PF, which days are taken for doing the calculation? I mean, suppose a month has 31 days, and in that, there are 4 Sundays. Shall we deduct (exclude) those 4 Sundays out of the 31 days? Do we calculate the salary for the working days (27 days) for doing the calculation of ESI and PF contribution? Or, will we take all 31 days as working days for ESI and PF calculation?

Please reply soon, it's very urgent.

Regards,
Lokesh Sharma

From India, Delhi
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Dear Lokesh,

PF and ESI calculation has nothing to do with working days. The deductions are to be made on the gross salary calculated. If you are paying salary for 31 days, then the PF is to be deducted from the basic amount that you have for this period. Similarly, you have to calculate and deduct the ESI. Working days only apply for salary calculation, and your PF and ESI will automatically follow from the salary you have calculated.

Regards,
Gaurang

From India, Ahmadabad
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Dear Lokesh,

As Gaurang explained, working days have nothing to do with ESI and PF calculations. Just remember, whether you are paying wages or a salary. If you are paying wages, then the leave days will not be paid, so no deduction will occur. However, in salary calculations, you need to consider all the days and deductions as well.

Thank you.

From India, Madras
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Can some one help in salary computation after deducting leaves applied (Loss of pay) say for 4 days. And in these 4days if one is Sunday is it entitled for deduction. Please help me.
From India, Hyderabad
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Dear Venkateshipl, for calcuation of ESI consider basic and all those allowances which an employee is paid on monthly basis in his salary, except washing allowance.
From India, Nagpur
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Dear Sunita,

The calculation of leave will depend on the Company's Leave Policy. Some companies follow the prefix-suffix rule. In case an employee is on leave on Saturday and Monday, then Sunday will be considered as leave.

Regards,
raga

From India, Mumbai
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Hi Gaurang,

Is it correct for the employer to calculate PF and ESI on the take-home salary and not on the Basic and DA? Please advise on the working for Basic 2569/- and DA 1284/- (House Rent 856/- plus Conveyance allowance 428/-). Should OT (Rs 2140/-) and washing allowance (Rs 428/-) be added to the DA?

The total amount paid to the employer is Rs 7923/-. He pays the employee Rs 6000/- monthly.

I would be most grateful if you could let me know the exact figure the employer is permitted to deduct from the above.

Appreciate your reply to ntune17@gmail.com.

Thanks,
Nep

From India, Bangalore
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If any employee working 31days in a month, then you will calculate e.si. and p.f. on 31 days
From India, Faridabad
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you will calculate esi 1.75% as employee contribution and 4.75% employer share on total of basic+hra+convence
From India, Faridabad
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