I am J. Raja Moahmed, working as an HR Assistant. I have a small doubt regarding PF & ESI deductions.
For a Gross Salary of Rs. 10,000, the breakdown is as follows:
- Basic: Rs. 4000
- HRA: Rs. 2000
- Conveyance: Rs. 800
- Medical Allowance: Rs. 800
- Special Allowance: Rs. 2400
My doubt is whether deducting PF from Basic is correct, and if deducting ESI from Gross is also correct. Is this method accurate? Please advise on the correct method.
From India, Chennai
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2For a Gross Salary of Rs. 10,000, the breakdown is as follows:
- Basic: Rs. 4000
- HRA: Rs. 2000
- Conveyance: Rs. 800
- Medical Allowance: Rs. 800
- Special Allowance: Rs. 2400
My doubt is whether deducting PF from Basic is correct, and if deducting ESI from Gross is also correct. Is this method accurate? Please advise on the correct method.
From India, Chennai
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Dear Raja, Firstly check current Minimum Wage of your company location (State) and then make Salary break-up.
From India, Chennai
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From India, Chennai
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Dear raja, Your method is correct pf will be deduct on basic and esi deduct on gross salary
From India, Panipat
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From India, Panipat
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i think PF is calculated from Basic & all other allowances excluding HRA.... (Kindly check) & ESI is calculated from Gross only.
From India, Chennai
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From India, Chennai
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PF is to be recovered from basic payable & Other allowances paid, Only exemption is on Payment of HRA.
From India, Ratnagiri
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From India, Ratnagiri
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Dear All,
Please find PF and ESIC deduction calculation below.
PF - PF is always deducted on Basic+VDA+Food allowance.
ESIC - ESIC is deducted on Gross wages/salary (Gross salary/wages include Basic+VDA+Food allowance).
Thanks & Regards,
Ashish Shaw
Email: ashishshaw@gmail.com
From India, Kolkata
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Please find PF and ESIC deduction calculation below.
PF - PF is always deducted on Basic+VDA+Food allowance.
ESIC - ESIC is deducted on Gross wages/salary (Gross salary/wages include Basic+VDA+Food allowance).
Thanks & Regards,
Ashish Shaw
Email: ashishshaw@gmail.com
From India, Kolkata
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls