Dear Seniors,
Firstly, I would like to thank one and all for giving your valuable suggestions for my posts.
Hoping that you will suggest me in this one too I am posting a query;
I would like to know regarding the Components like BASIC,PF,ESI,HRA , in regard with an employee getting absent for 5 days of LOP.
Will the above components gets affected or will be static with only difference in the term LOP in the Deductions column.
Please suggest me which one of the below calculations is correct;
If CTC is Rs.1,20,000 and Monthly Gross is Rs 10,000/-
1) Basic (50%)= 5,000 PF(12%)= 600
HRA (50% of Basic)= 2,500 ESI(1.75%)=175
Conveyance= 1,500 (fixed) LOP(5 Days)=1665
Other Allowances= 1,000
Total Earnings= 10,000 Total Deductions=2440
Net Pay= 7,560
Or
If LOP of 5 days is deducted from Gross pay per month then Rs 8,335(10,000-1665)
2) Basic (50%)= 4,168 PF(12%)= 500
HRA (50% of Basic)= 2,084 ESI(1.75%)=146
Conveyance= 1,500 (fixed)
Other Allowances= 583
Total Earnings= 8,335 Total Deductions=646
Net Pay= 7,689
Please suggest me which one is correct methodology.
Regards,
Sowmya R
From India, Hyderabad
1Firstly, I would like to thank one and all for giving your valuable suggestions for my posts.
Hoping that you will suggest me in this one too I am posting a query;
I would like to know regarding the Components like BASIC,PF,ESI,HRA , in regard with an employee getting absent for 5 days of LOP.
Will the above components gets affected or will be static with only difference in the term LOP in the Deductions column.
Please suggest me which one of the below calculations is correct;
If CTC is Rs.1,20,000 and Monthly Gross is Rs 10,000/-
1) Basic (50%)= 5,000 PF(12%)= 600
HRA (50% of Basic)= 2,500 ESI(1.75%)=175
Conveyance= 1,500 (fixed) LOP(5 Days)=1665
Other Allowances= 1,000
Total Earnings= 10,000 Total Deductions=2440
Net Pay= 7,560
Or
If LOP of 5 days is deducted from Gross pay per month then Rs 8,335(10,000-1665)
2) Basic (50%)= 4,168 PF(12%)= 500
HRA (50% of Basic)= 2,084 ESI(1.75%)=146
Conveyance= 1,500 (fixed)
Other Allowances= 583
Total Earnings= 8,335 Total Deductions=646
Net Pay= 7,689
Please suggest me which one is correct methodology.
Regards,
Sowmya R
From India, Hyderabad
sowmya, when LOP takes place, you need not show the deductions for the LOP period in separate column. You can show the No. of working days in the payslip. I think No. 2 is correct. pon
From India, Lucknow
From India, Lucknow
Dear Sowmya, Pon is right. LOP is not required to show in Payroll. Your second option is correct.
From India, Calcutta
From India, Calcutta
Dear Pon and Sarkar,
Thanks so much for the suggestions.Also, would like to know, if an employees pay is Rs16,000/- per month and if he is paid for ,say a 12 days. Then, in this case does he fall under ESI Slab or not. According to ESI applicability , an employee <= Rs15,000 is eligible but here I am confused.
Hope, you would suggest me how to go about this.
Cheers!! Have a good Day..
Regards,
Sowmya R
From India, Hyderabad
Thanks so much for the suggestions.Also, would like to know, if an employees pay is Rs16,000/- per month and if he is paid for ,say a 12 days. Then, in this case does he fall under ESI Slab or not. According to ESI applicability , an employee <= Rs15,000 is eligible but here I am confused.
Hope, you would suggest me how to go about this.
Cheers!! Have a good Day..
Regards,
Sowmya R
From India, Hyderabad
Sowmya, The employee is not covered under ESI as he/she is above the threshold limit of 15000. LOP or any other deductions do not count for determining the applicability of ESI coverage. pon
From India, Lucknow
From India, Lucknow
Dear Sowmya If employees salary is above 16000/- then he is not covered under ESI. Due to LOP even if wages is lesser than 15000/- no need to cover under ESI. Regards
From India, Bangalore
From India, Bangalore
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