Respected Seniors, I just want to know in private organisation how they calculate the PF & ESIC ? can anybody help me out for this... Thanks & Regards, Binita
From India, Indore
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3From India, Indore
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Hi,
For PF, it is calculated on Basic + DA. For example, if Basic + DA is 6500, then PF is calculated as 12% of that amount, which equals 6500 * 12 / 100 = 780 that can be deducted from employees.
For monthly challan preparation, if the total number of employees' Basic + DA wages is 6500, then:
Employee contribution Employer contribution
A/c 1- 12% i.e. 6500 * 12 / 100 = 780 3.67% i.e. 6500 * 3.67 / 100 = 238.55
A/c 2- - 1.1% i.e. 6500 * 1.1 / 100 = 71.5
A/10- - 8.33% i.e. 6500 * 8.33 / 100 = 541.45
A/C- 21 - 0.5% i.e. 6500 * 0.5 / 100 = 32.5
A/C- 22 - 0.01% i.e. 6500 * 0.01 / 100 = 0.65
Shrikant Talwar
From India, Pune
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For PF, it is calculated on Basic + DA. For example, if Basic + DA is 6500, then PF is calculated as 12% of that amount, which equals 6500 * 12 / 100 = 780 that can be deducted from employees.
For monthly challan preparation, if the total number of employees' Basic + DA wages is 6500, then:
Employee contribution Employer contribution
A/c 1- 12% i.e. 6500 * 12 / 100 = 780 3.67% i.e. 6500 * 3.67 / 100 = 238.55
A/c 2- - 1.1% i.e. 6500 * 1.1 / 100 = 71.5
A/10- - 8.33% i.e. 6500 * 8.33 / 100 = 541.45
A/C- 21 - 0.5% i.e. 6500 * 0.5 / 100 = 32.5
A/C- 22 - 0.01% i.e. 6500 * 0.01 / 100 = 0.65
Shrikant Talwar
From India, Pune
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Hi friends,
Can anybody help me with how to calculate salary, PF, ESI, and how to maintain attendance forms along with the related form numbers and procedures for PF, ESI, EPF? Which forms are useful and what should be attached, like Form 1, 2, etc.? I need full details with calculations on Deposit Linked Insurance and PF calculations in detail. Please help me.
-Srivani
From India, Bangalore
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Can anybody help me with how to calculate salary, PF, ESI, and how to maintain attendance forms along with the related form numbers and procedures for PF, ESI, EPF? Which forms are useful and what should be attached, like Form 1, 2, etc.? I need full details with calculations on Deposit Linked Insurance and PF calculations in detail. Please help me.
-Srivani
From India, Bangalore
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please help me how to calculate pf calculations,esi , salary calculations with detailed formula
From India, Bangalore
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From India, Bangalore
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Dear All,
Please let me know how the basic and DA percentage is decided in the private sector. In the private sector, is there a fixed minimum or maximum percentage for basic and DA?
I am awaiting a positive response.
Thanks,
Rashmi
From India, Mumbai
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Please let me know how the basic and DA percentage is decided in the private sector. In the private sector, is there a fixed minimum or maximum percentage for basic and DA?
I am awaiting a positive response.
Thanks,
Rashmi
From India, Mumbai
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Well, if you just want to know about the calculation method for PF & ESIC, then it's done in the following manner...
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, then my gross for that month would be 13,548.00. So, for the Employee Contribution of 1.75%, 13,548 * 1.75% = 237.09. However, as mentioned earlier, it should be calculated to the next higher rupee, so it will be 238.00. For the Employer Contribution of 4.75%, 13,548 * 4.75% = 643.53, but for ESIC it will be 644.00. Simply add them together, make a challan of it, and deposit it.
PF
PF is calculated based on Basic + Dearness Allowance. PF is calculated as 12% of that amount by both the employee and employer. The employee contribution is EPF (12%), while the employer contribution is divided into two parts: EPF (3.67%) and 8.33% (FPF).
For example, if one's gross is 13,000, then the basic would be 6,500.00 (50% of Gross and it varies). Employee Contribution - 6,500 * 12% = 780.00. Employer Contribution - 6,500 * 3.67% = 239.00. Employee Contribution - 6,500 * 8.33% = 541.00, but this contribution should not exceed 541.00 Rs. This is the calculation for an individual person.
If you need guidance on how to make a challan, feel free to reach out.
Hope this information helps you.
From India, Jaipur
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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, then my gross for that month would be 13,548.00. So, for the Employee Contribution of 1.75%, 13,548 * 1.75% = 237.09. However, as mentioned earlier, it should be calculated to the next higher rupee, so it will be 238.00. For the Employer Contribution of 4.75%, 13,548 * 4.75% = 643.53, but for ESIC it will be 644.00. Simply add them together, make a challan of it, and deposit it.
PF
PF is calculated based on Basic + Dearness Allowance. PF is calculated as 12% of that amount by both the employee and employer. The employee contribution is EPF (12%), while the employer contribution is divided into two parts: EPF (3.67%) and 8.33% (FPF).
For example, if one's gross is 13,000, then the basic would be 6,500.00 (50% of Gross and it varies). Employee Contribution - 6,500 * 12% = 780.00. Employer Contribution - 6,500 * 3.67% = 239.00. Employee Contribution - 6,500 * 8.33% = 541.00, but this contribution should not exceed 541.00 Rs. This is the calculation for an individual person.
If you need guidance on how to make a challan, feel free to reach out.
Hope this information helps you.
From India, Jaipur
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No, there is no any fix % but in Metro cities it’s 50 % of gross and Non-Meto cities it’s 40 % of gross... but again it’s on company policy..
From India, Jaipur
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From India, Jaipur
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Respected Sir/Madam, Thank You so much for giving me this PF & ESIC Calculations. will get back to you if i will come across any Query. Regards, Binita
From India, Indore
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From India, Indore
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Dear All,
I am in a huge confusion regarding the pay structure. Please let me know about the following terms:
1. CTC
2. GROSS
3. NET
As per my understanding:
NET + (EMPLOYEE'S CONTRIBUTION OF PF + EMPLOYEE'S CONTRIBUTION OF ESIC) = GROSS
GROSS + (EMPLOYER'S CONTRIBUTION OF PF + EMPLOYER'S CONTRIBUTION OF ESIC + PTAX) = CTC
If this is correct, then the salary breakup of Employee "A" would be:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF (EMPLOYEE) 1152
PF (EMPLOYER) 1152
PTAX 130
Gross 19200
CTC 21634
Take Home 19070
However, the company is offering:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF 1152
Gross 19200
CTC 20352
Take Home 18048
Could you please confirm which one is correct? This is urgent, and I would appreciate your help.
Somdatta Neogi
9903068598
Kolkata (W.B.)
From India, New Delhi
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I am in a huge confusion regarding the pay structure. Please let me know about the following terms:
1. CTC
2. GROSS
3. NET
As per my understanding:
NET + (EMPLOYEE'S CONTRIBUTION OF PF + EMPLOYEE'S CONTRIBUTION OF ESIC) = GROSS
GROSS + (EMPLOYER'S CONTRIBUTION OF PF + EMPLOYER'S CONTRIBUTION OF ESIC + PTAX) = CTC
If this is correct, then the salary breakup of Employee "A" would be:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF (EMPLOYEE) 1152
PF (EMPLOYER) 1152
PTAX 130
Gross 19200
CTC 21634
Take Home 19070
However, the company is offering:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF 1152
Gross 19200
CTC 20352
Take Home 18048
Could you please confirm which one is correct? This is urgent, and I would appreciate your help.
Somdatta Neogi
9903068598
Kolkata (W.B.)
From India, New Delhi
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Your company offering you is correct, and in a simple way. CTC stands for Cost to Company, which is Your Gross Amount plus other costs that the company pays for you. Gross is the amount that the company agrees to give you for your work, and Net is the amount that remains after deductions.
From India, Jaipur
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From India, Jaipur
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