Dear All,
One of my friends is looking for the salary structure with PF and ESIC deductions as per the minimum wage rule in Gujarat. He is working in a startup and needs it urgently but is confused about the PF deduction rules and minimum wage criteria. Can anyone help out, please? Thank you in advance.
From India, Mumbai
13One of my friends is looking for the salary structure with PF and ESIC deductions as per the minimum wage rule in Gujarat. He is working in a startup and needs it urgently but is confused about the PF deduction rules and minimum wage criteria. Can anyone help out, please? Thank you in advance.
From India, Mumbai
Salary Structure with PF and ESIC Deductions as per Minimum Wage Rule in Gujarat
To calculate the salary structure with PF and ESIC deductions as per the minimum wage rule in Gujarat, you need to consider the following steps:
1. Minimum Wage Rule in Gujarat: Ensure you are aware of the minimum wage rule applicable in Gujarat for the specific category of employment. The minimum wage rates vary based on the type of work performed and are revised periodically by the state government.
2. Provident Fund (PF) Deduction:
- PF is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The current PF contribution rate is 12% of the employee's basic salary plus dearness allowance.
- The employer also contributes an equal amount to the employee's PF account.
- The total PF contribution (employee's and employer's share) should be at least 12% of the employee's basic salary and dearness allowance.
3. Employee State Insurance Corporation (ESIC) Deduction:
- ESIC is applicable to employees earning up to a specified wage limit and is governed by the Employees' State Insurance Act, 1948.
- The current ESIC contribution rate is 1.75% of the employee's gross salary, while the employer's contribution is 4.75% of the employee's gross salary.
- The total ESIC contribution (employee's and employer's share) should be calculated based on the gross salary.
4. Salary Structure Calculation:
- Start by determining the employee's basic salary and dearness allowance.
- Calculate the PF deduction as 12% of the basic salary and dearness allowance.
- Compute the ESIC deduction as per the specified rates on the gross salary.
- Deduct the PF and ESIC contributions from the employee's gross salary to arrive at the net salary.
5. Compliance and Reporting:
- Ensure that the PF and ESIC deductions are accurately calculated and deposited within the specified timelines to the respective authorities.
- Maintain proper records of PF and ESIC contributions for each employee as per the statutory requirements.
By following these steps and adhering to the relevant labor laws and policies, you can establish a salary structure with PF and ESIC deductions in compliance with the minimum wage rule in Gujarat for your friend's startup.
From India, Gurugram
To calculate the salary structure with PF and ESIC deductions as per the minimum wage rule in Gujarat, you need to consider the following steps:
1. Minimum Wage Rule in Gujarat: Ensure you are aware of the minimum wage rule applicable in Gujarat for the specific category of employment. The minimum wage rates vary based on the type of work performed and are revised periodically by the state government.
2. Provident Fund (PF) Deduction:
- PF is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The current PF contribution rate is 12% of the employee's basic salary plus dearness allowance.
- The employer also contributes an equal amount to the employee's PF account.
- The total PF contribution (employee's and employer's share) should be at least 12% of the employee's basic salary and dearness allowance.
3. Employee State Insurance Corporation (ESIC) Deduction:
- ESIC is applicable to employees earning up to a specified wage limit and is governed by the Employees' State Insurance Act, 1948.
- The current ESIC contribution rate is 1.75% of the employee's gross salary, while the employer's contribution is 4.75% of the employee's gross salary.
- The total ESIC contribution (employee's and employer's share) should be calculated based on the gross salary.
4. Salary Structure Calculation:
- Start by determining the employee's basic salary and dearness allowance.
- Calculate the PF deduction as 12% of the basic salary and dearness allowance.
- Compute the ESIC deduction as per the specified rates on the gross salary.
- Deduct the PF and ESIC contributions from the employee's gross salary to arrive at the net salary.
5. Compliance and Reporting:
- Ensure that the PF and ESIC deductions are accurately calculated and deposited within the specified timelines to the respective authorities.
- Maintain proper records of PF and ESIC contributions for each employee as per the statutory requirements.
By following these steps and adhering to the relevant labor laws and policies, you can establish a salary structure with PF and ESIC deductions in compliance with the minimum wage rule in Gujarat for your friend's startup.
From India, Gurugram
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