Respected to my seniors,
Sir/Ma'am, I have a few doubts which I request you to kindly help me out with as I am confused about the below-mentioned points:
1) I wanted to know if somebody's basic salary is 50000, then how much percentage of PF would be deducted? And up to how much amount of basic salary would PF be deducted? What is the advantage of the deduction of PF?
2) How to calculate ESI, DA, TA, HRA, LTA, Conveyance Allowance, Overtime allowance, Entertainment allowance? Will these be calculated with the basic salary, gross salary, or CTC? What are the advantages of the deduction of ESI and how will that benefit us in the future?
Sir/Ma'am, kindly let me know the advantages of DA, TA, HRA, LTA as well.
Kindly help me out as I urgently need this information, for which I would be very grateful to you all. Please reply to all the above questions very soon.
From India, Rourkela
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Sir/Ma'am, I have a few doubts which I request you to kindly help me out with as I am confused about the below-mentioned points:
1) I wanted to know if somebody's basic salary is 50000, then how much percentage of PF would be deducted? And up to how much amount of basic salary would PF be deducted? What is the advantage of the deduction of PF?
2) How to calculate ESI, DA, TA, HRA, LTA, Conveyance Allowance, Overtime allowance, Entertainment allowance? Will these be calculated with the basic salary, gross salary, or CTC? What are the advantages of the deduction of ESI and how will that benefit us in the future?
Sir/Ma'am, kindly let me know the advantages of DA, TA, HRA, LTA as well.
Kindly help me out as I urgently need this information, for which I would be very grateful to you all. Please reply to all the above questions very soon.
From India, Rourkela
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Not again! This seems to be a recurring trend now.
Ajay, it would be best if you used one of the salary calculators in Excel that a few generous contributors have uploaded. They have the breakdown percentage of every component and the contribution margin as well so you can learn from them.
From India, Mumbai
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94Ajay, it would be best if you used one of the salary calculators in Excel that a few generous contributors have uploaded. They have the breakdown percentage of every component and the contribution margin as well so you can learn from them.
From India, Mumbai
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I am very new to these fields so dont have any ideas rearding it, Hence i wanted few help from u expereinced and genius professional....... Regards, Ajay Hr Executive
From India, Rourkela
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From India, Rourkela
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Ajay: Appreciate your patience. As advised, download one of the excel salary calculators and read through the calculation percentages.
From India, Mumbai
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From India, Mumbai
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Hi Ajay,
It is apparent that you are totally confused. You are mixing up too many things. If your company is large and has established scales of pay, then they would have already fixed your salary and allowances. The basic salary, DA, HRA, LTA, Conveyance Allowance, Overtime Allowance, Entertainment Allowance are fixed by the company at their discretion. If you are a workman and your factory comes under the Factories' Act, only then the DA is declared by the Government. Otherwise, even DA, whether to give to employees or not, is at the discretion of the company.
The contributions to EPF, ESI, and Professional Tax are to be paid to the Government at the rates fixed by the Government. If you are drawing a gross salary of more than Rs.15,000 pm, then you are out of the purview of ESI.
The total amount consisting of your Basic Salary, DA (if any), and all other allowances included, is known as your Gross Salary.
The amount net of all deductions towards EPF, ESI, Professional Tax, and Income Tax, if applicable, is known as your Net Salary or Take-Home Salary.
In addition to the Gross Salary, the company incurs other expenses on employees like free or subsidized refreshments, meals, transportation, employer's contribution towards EPF and ESI, medical facilities, if any, etc. and all these added up are known as CTC (Cost to the Company).
The percentages of contribution to EPF and ESI (both employees' and employer's) are available on thousands of webpages. Do a Google search.
From India, Mumbai
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It is apparent that you are totally confused. You are mixing up too many things. If your company is large and has established scales of pay, then they would have already fixed your salary and allowances. The basic salary, DA, HRA, LTA, Conveyance Allowance, Overtime Allowance, Entertainment Allowance are fixed by the company at their discretion. If you are a workman and your factory comes under the Factories' Act, only then the DA is declared by the Government. Otherwise, even DA, whether to give to employees or not, is at the discretion of the company.
The contributions to EPF, ESI, and Professional Tax are to be paid to the Government at the rates fixed by the Government. If you are drawing a gross salary of more than Rs.15,000 pm, then you are out of the purview of ESI.
The total amount consisting of your Basic Salary, DA (if any), and all other allowances included, is known as your Gross Salary.
The amount net of all deductions towards EPF, ESI, Professional Tax, and Income Tax, if applicable, is known as your Net Salary or Take-Home Salary.
In addition to the Gross Salary, the company incurs other expenses on employees like free or subsidized refreshments, meals, transportation, employer's contribution towards EPF and ESI, medical facilities, if any, etc. and all these added up are known as CTC (Cost to the Company).
The percentages of contribution to EPF and ESI (both employees' and employer's) are available on thousands of webpages. Do a Google search.
From India, Mumbai
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[QUOTE=Cameo;2196263) Thank you so much professional. It was indeed useful to me. Just what i needed. have a great week ahead!! Regards, Ajay Hr Executive
From India, Rourkela
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From India, Rourkela
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Dear professionals, I need some information regarding PF, When deoes an employee eligible for pension scheme?
From India
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From India
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An employee is eligible for pension scheme only if he has a continous 10 years service and after he get 58years old to avail the benefit.. If i am wrong then please correct me professionals.
From India, Rourkela
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From India, Rourkela
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[QUOTE=Cameo;2196263]
Hello, I wanted to know:
1) Can a company deduct income tax/PF/ESI/professional tax with very few employees?
2) How many direct and indirect employees are required for PF, ESI, PT, and income tax deduction?
3) What if a company has a higher number of trainees, will there be PF, ESI, PT, and income tax deduction?
Looking forward to your response.
Regards,
Ajay
HR Executive
From India, Rourkela
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Hello, I wanted to know:
1) Can a company deduct income tax/PF/ESI/professional tax with very few employees?
2) How many direct and indirect employees are required for PF, ESI, PT, and income tax deduction?
3) What if a company has a higher number of trainees, will there be PF, ESI, PT, and income tax deduction?
Looking forward to your response.
Regards,
Ajay
HR Executive
From India, Rourkela
Acknowledge(0)Amend(0)
[QUOTE=talentsorcerer;2196066]
Hello, I wanted to know:
1) Can a company deduct income tax, PF, ESI, professional tax with very few employees?
2) How many direct and indirect employees are required for PF, ESI, PT, and income tax deductions?
3) What if a company has a higher number of trainees? Will there be PF, ESI, PT, and income tax deductions?
Looking forward to your response.
Regards,
Ajay
HR Executive
From India, Rourkela
Acknowledge(0)Amend(0)
Hello, I wanted to know:
1) Can a company deduct income tax, PF, ESI, professional tax with very few employees?
2) How many direct and indirect employees are required for PF, ESI, PT, and income tax deductions?
3) What if a company has a higher number of trainees? Will there be PF, ESI, PT, and income tax deductions?
Looking forward to your response.
Regards,
Ajay
HR Executive
From India, Rourkela
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