I am really confused about the calculation of a 21000 gross salary for ESIC. Suppose I have a CTC of Rs. 280,000, which includes PF employer share of Rs. 20,160 (Rs. 1,680 per month), making my gross salary Rs. 259,840 (Rs. 21,653 per month). My understanding is that to determine ESIC coverage, if (CTC - PF employer) is less than Rs. 21,000 per month, the person is eligible for ESIC.
Another suggestion I have received is that if my CTC is Rs. 280,000, PF employer contribution is Rs. 20,160, and ESIC employer share is Rs. 11,782 (4.75% of gross), then my gross salary decreases to Rs. 248,052 (Rs. 20,671 per month). Since my gross after considering the employer share of ESIC is below Rs. 21,000, I would need to be registered under ESIC.
I would appreciate clarification on which method of calculation is correct. Thank you!
From India
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Another suggestion I have received is that if my CTC is Rs. 280,000, PF employer contribution is Rs. 20,160, and ESIC employer share is Rs. 11,782 (4.75% of gross), then my gross salary decreases to Rs. 248,052 (Rs. 20,671 per month). Since my gross after considering the employer share of ESIC is below Rs. 21,000, I would need to be registered under ESIC.
I would appreciate clarification on which method of calculation is correct. Thank you!
From India
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ESI is on gross without considering ESI contribution. Your first calculation is the right one.
From India, Chennai
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60From India, Chennai
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SALARY SHEET CALCULATION.xls
Salary calculation.doc