Hello, Why ESI & EPF deduction amount is vary in every month salary ? how does it calculated? Regards, Seja Desai
From India, Surat
From India, Surat
Dear Seja,
It will not vary.
PF will be deducted 12%(or Rs.780/- in some organisation where basic pay is more than 6,500) from employees
ESI will be deducted 1.75% from employees(upto Gross salary Rs.15,000)
The following are the case where the PF & ESI contribution varies.
PF will vary only in the month when an employee work on the National festival holiday or if he is absent.
Eg. If employee is paid for 31 days in january, If he works on 1st, 26th then he has to be paid double wages for the 2 days. here the basic salary will vary because he will be paid for 33 days.
Similarly if an employee is absent for 2 days then he will get the salary for 29 day( Here also basic pay varies
ESI will vary only if the employee is paid overtime, monthly incentive or attendance bonus or National festival holiday.( Here even the gross amount increases more than 15000 the ESI amount will be deducted for the actual gross earned)
From India, Mumbai
188It will not vary.
PF will be deducted 12%(or Rs.780/- in some organisation where basic pay is more than 6,500) from employees
ESI will be deducted 1.75% from employees(upto Gross salary Rs.15,000)
The following are the case where the PF & ESI contribution varies.
PF will vary only in the month when an employee work on the National festival holiday or if he is absent.
Eg. If employee is paid for 31 days in january, If he works on 1st, 26th then he has to be paid double wages for the 2 days. here the basic salary will vary because he will be paid for 33 days.
Similarly if an employee is absent for 2 days then he will get the salary for 29 day( Here also basic pay varies
ESI will vary only if the employee is paid overtime, monthly incentive or attendance bonus or National festival holiday.( Here even the gross amount increases more than 15000 the ESI amount will be deducted for the actual gross earned)
From India, Mumbai
Hello Seja
you mean to tell the PF & ESI on our contribution or total contribution?
For individual PF & ESI there won't be difference in every month salary until and unless there is difference on your salary.
PF is 12% on your basic
ESI is 1.75% on your gross
Regards
From India, Bangalore
you mean to tell the PF & ESI on our contribution or total contribution?
For individual PF & ESI there won't be difference in every month salary until and unless there is difference on your salary.
PF is 12% on your basic
ESI is 1.75% on your gross
Regards
From India, Bangalore
Dear Kris,
DA varies from company to company.Moreover PVT companies go only for Basic.
Mostly DA is followed only in Central/state government office.(Presently for central govt emp. DA is 51% of basic pay - increased from 45% to 51%)
Also it is used for the employees where minimum wages rule applies.(Minimum wages is combination of Basic & DA)
From India, Mumbai
DA varies from company to company.Moreover PVT companies go only for Basic.
Mostly DA is followed only in Central/state government office.(Presently for central govt emp. DA is 51% of basic pay - increased from 45% to 51%)
Also it is used for the employees where minimum wages rule applies.(Minimum wages is combination of Basic & DA)
From India, Mumbai
Dear
@ Kris,
Sorry, The DA for central Govt is presently 58% and which has been proposed to 65%. it is increased every six month.
@ RRReddy
DA concept came into effect in 1972 only. Mainly it came for pensioner and slowly it has been applied to all the government sectors(both central & state).
Dearness allowance is granted to compensate price increase above to which the revised pay scales relate. This will be sanctioned twice a year, payable from 1 January and 1 July.
Since pvt company doesnt give the salary using the pay scale DA is not given in many companies.
Since the CTC is fixed for the employee they derive the salary heads as follows.
Basic - 50 - 60% of gross salary
HRA - 40 - 50% of basic salary( 50% in case of metro)
Transport Allowance - 800(Maximum eligibility of TAX exemption for TA)
Medical Allowance - 1250(Maximum eligibility of TAX exemption for Medical reimbursement)
Rest salary will be put under the SPl allowance or adhoc allowance salary heads.
Eg: if an employee is getting 20000 as monthly salary then his break up would be
Basic 12000
HRA 6000
TA 800
Spl Allowance
/ Adhoc Allowance 1200
Total Salary 20000
If an employee is employed / paid under minimum wages then respective state government will give the minimum wages rate for different workers category based on the class of city. it is calculated as Basic + DA.
Eg. A sales person who works in Tamilnadu(Chennai) gets his wages as follows.
basic salary - 78.88 / day
DA - 43.65 / day
Total - 122.53 / day
so if the person is getting 7000 as salary, his salry structure will be
Basic + DA - 3799
HRA - 1517
TA - 800
Spl allow - 884
Total - 7000
From India, Mumbai
@ Kris,
Sorry, The DA for central Govt is presently 58% and which has been proposed to 65%. it is increased every six month.
@ RRReddy
DA concept came into effect in 1972 only. Mainly it came for pensioner and slowly it has been applied to all the government sectors(both central & state).
Dearness allowance is granted to compensate price increase above to which the revised pay scales relate. This will be sanctioned twice a year, payable from 1 January and 1 July.
Since pvt company doesnt give the salary using the pay scale DA is not given in many companies.
Since the CTC is fixed for the employee they derive the salary heads as follows.
Basic - 50 - 60% of gross salary
HRA - 40 - 50% of basic salary( 50% in case of metro)
Transport Allowance - 800(Maximum eligibility of TAX exemption for TA)
Medical Allowance - 1250(Maximum eligibility of TAX exemption for Medical reimbursement)
Rest salary will be put under the SPl allowance or adhoc allowance salary heads.
Eg: if an employee is getting 20000 as monthly salary then his break up would be
Basic 12000
HRA 6000
TA 800
Spl Allowance
/ Adhoc Allowance 1200
Total Salary 20000
If an employee is employed / paid under minimum wages then respective state government will give the minimum wages rate for different workers category based on the class of city. it is calculated as Basic + DA.
Eg. A sales person who works in Tamilnadu(Chennai) gets his wages as follows.
basic salary - 78.88 / day
DA - 43.65 / day
Total - 122.53 / day
so if the person is getting 7000 as salary, his salry structure will be
Basic + DA - 3799
HRA - 1517
TA - 800
Spl allow - 884
Total - 7000
From India, Mumbai
Hi Every one..
Suppose a person join & his basic salary 6000/- p.m. His salary is eligible for PF deduction. After some months his basic salary become 7000/- p.m. due to increment. Now the person not willing to contribute in PF. Is he become excluded or not?
Regrads
Soumya Dutta
From India, Pune
Suppose a person join & his basic salary 6000/- p.m. His salary is eligible for PF deduction. After some months his basic salary become 7000/- p.m. due to increment. Now the person not willing to contribute in PF. Is he become excluded or not?
Regrads
Soumya Dutta
From India, Pune
Dear Soumya, Yes, you can exempt him from EPF deduction based on wage ceiling more than Rs.6500/-. you can submit FORM 1(Exemption under Paragraph 27 of the Scheme) to the PF office.
From India, Mumbai
From India, Mumbai
Dear Soumya,
you can ask the employee to fill and attested by the authorized person of the organisation and submit to PF office.
If you have group of people who want to have exemption you can apply through your company to PF office.
After getting exemption ask them to withdraw their PF using Form 19 and Form 10C.
Note: Even though we have an exemption in PF, if you can convince the employee ask them to continue the PF since it is a hidden saving by an employee where he/she will be benefited in future.
From India, Mumbai
you can ask the employee to fill and attested by the authorized person of the organisation and submit to PF office.
If you have group of people who want to have exemption you can apply through your company to PF office.
After getting exemption ask them to withdraw their PF using Form 19 and Form 10C.
Note: Even though we have an exemption in PF, if you can convince the employee ask them to continue the PF since it is a hidden saving by an employee where he/she will be benefited in future.
From India, Mumbai
Hi,
It will not vary month to month if employee's attendance are full for every month. If leave without pay (LWP) is there then variation will be there as per LWP days and LWP is compensate in next month also. If employees works on national holidays (some state festival holidays also covered for double salary or one compensatory off) than and opt for salary for that days than he will get one day salary extra and PF?ESIC will be deducted per salary processed for that month.
Oveertime is also impect on deduction on ESIC.
regards,
accord services, noida
From India, Delhi
It will not vary month to month if employee's attendance are full for every month. If leave without pay (LWP) is there then variation will be there as per LWP days and LWP is compensate in next month also. If employees works on national holidays (some state festival holidays also covered for double salary or one compensatory off) than and opt for salary for that days than he will get one day salary extra and PF?ESIC will be deducted per salary processed for that month.
Oveertime is also impect on deduction on ESIC.
regards,
accord services, noida
From India, Delhi
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ESI & EPF REGISTRTION DOCUMENT.doc
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