Dear seniors,
Please help me. I am a fresher who recently joined a company as an HR executive. I want to know how PF and ESI calculations should be done and about gross salary. Please help me out.
Thanks,
Dolly Singh
From India, Delhi
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Please help me. I am a fresher who recently joined a company as an HR executive. I want to know how PF and ESI calculations should be done and about gross salary. Please help me out.
Thanks,
Dolly Singh
From India, Delhi
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Dear Dolly Singh,
PF should be calculated on actual Basic + DA salary. ESI should be calculated for Actual Gross Salary. For PF, it is deducted 12% on both employee and employer share. For ESI, it is deducted 1.75% from the employee and 4.75% from the employer's side. PF will be applicable for all employees, but if any person is earning more than Rs. 6500/-, then you can pay Rs. 780/- for both employer and employee (12% of 6500 is 780). Some companies pay 12% of basic salary. ESI is applicable only for employees having a gross salary less than 15000.
From India, Mumbai
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193PF should be calculated on actual Basic + DA salary. ESI should be calculated for Actual Gross Salary. For PF, it is deducted 12% on both employee and employer share. For ESI, it is deducted 1.75% from the employee and 4.75% from the employer's side. PF will be applicable for all employees, but if any person is earning more than Rs. 6500/-, then you can pay Rs. 780/- for both employer and employee (12% of 6500 is 780). Some companies pay 12% of basic salary. ESI is applicable only for employees having a gross salary less than 15000.
From India, Mumbai
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Dear Shenbagarajan,
As you have mentioned, Rs. 780 contribution is from the employee only; employer contribution should be added. When guiding juniors, we should help them understand that the contribution is 12% from the employee and 13.61% from the employer on (Basic+DA). The breakdown is as follows: 12% from the employee, 12% from the employer, 0.50% for EDLI (Employee Deposit Linked Insurance), 1.10% for Admin Charges, and 0.01% for Admin Charges on EDLI.
Regards,
Karthik
From India, Vijayawada
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As you have mentioned, Rs. 780 contribution is from the employee only; employer contribution should be added. When guiding juniors, we should help them understand that the contribution is 12% from the employee and 13.61% from the employer on (Basic+DA). The breakdown is as follows: 12% from the employee, 12% from the employer, 0.50% for EDLI (Employee Deposit Linked Insurance), 1.10% for Admin Charges, and 0.01% for Admin Charges on EDLI.
Regards,
Karthik
From India, Vijayawada
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Dear Dolly Singh,
PF is calculated on the Basic amount, whereas the ESI is calculated on the Gross Salary.
ESI Employee Cont - 1.75% ESI Employer Cont - 4.75% Total ESI Cont - 6.5%
PF Employee Cont - 12% PF Employer Cont - 13.61% Total Cont - 25.61
With Regards, M.V. Krishna Reddy
From India, Hyderabad
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PF is calculated on the Basic amount, whereas the ESI is calculated on the Gross Salary.
ESI Employee Cont - 1.75% ESI Employer Cont - 4.75% Total ESI Cont - 6.5%
PF Employee Cont - 12% PF Employer Cont - 13.61% Total Cont - 25.61
With Regards, M.V. Krishna Reddy
From India, Hyderabad
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Dear Karthik,
Here we are educating the employee on basics to understand how the deductions are made. Even in the payslip, you show the 12% contribution by the employer. Moreover, if you are educating the junior that 13.67% employer share, then the same will be communicated to the employee. The employee will add his 12%, and 13.61% has been added to his PF contribution. When PF and ESI are discussed, it is wise to communicate the actual amount being deducted from both sides. EDLI and Admin charges will be taken into account while remitting the challan through the bank or online, which will be known by the juniors when they have hands-on experience.
From India, Mumbai
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Here we are educating the employee on basics to understand how the deductions are made. Even in the payslip, you show the 12% contribution by the employer. Moreover, if you are educating the junior that 13.67% employer share, then the same will be communicated to the employee. The employee will add his 12%, and 13.61% has been added to his PF contribution. When PF and ESI are discussed, it is wise to communicate the actual amount being deducted from both sides. EDLI and Admin charges will be taken into account while remitting the challan through the bank or online, which will be known by the juniors when they have hands-on experience.
From India, Mumbai
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thank you all... but still i have some problem can any body will guide that how on excel sheet salary slip should be made and how deduction should be done thank Dolly singh
From India, Delhi
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From India, Delhi
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Dear Dolly,
The salary slip format will be different for different companies. Generally, it will have various components like earnings, deductions, pay and disbursement details, ESI/PF number, number of working days, employee/employer address. So, according to your requirements, you can prepare it by including different components.
From India, New Delhi
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The salary slip format will be different for different companies. Generally, it will have various components like earnings, deductions, pay and disbursement details, ESI/PF number, number of working days, employee/employer address. So, according to your requirements, you can prepare it by including different components.
From India, New Delhi
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