PF is calculated on basic salary and it's 12% of basic.And
if basic is more than 6500 then also it is deducted 780 is
the maximum limit.
It's due to ceiling of 6500/-.
But in some firms 780/- is not limit there is deduction of
exact 12% of basic if my basic salary is 11500 then there
is deduction of 1380/- if an employee wants to deduct his
pf more than 780. he can do this.while basic is 11500,but
employer's contribution 8.33 % calculate on 6500.
And in PF there is contribution from emloyer also.
If my PF is deducted 780/-then Employer will also
contribute 780/-.But whole this 780 is not going to PF
account.Out of 12% of employer contribution 8.33% is
contributed for pension scheme and 3.67% for PF.
And ESIC is calculated on gross salary.
If gross salary is more then 10000/- then the employee is
not applicable for ESIC.ESIC is deducted as 1.75% of gross
salary of employee.In ESIC also there is Employer's
contribution and it is 4.75% of gross salary. but now esi
gross limit increase 10000 to 15000 so esi is calculated on
gross limit 15000.
EPF is calculated on Basic+DA.
ESI is calculated on Gross Salary.
In both the cases Employer's and Employees' contribution
will be there.
Limits and rates may change from year to year or remain the
same for many years. E.g. In the Central Govt. budget has
proposed to increase salary limit for ESI applicability from
Rs. 10,000/- to Rs. 15,000/- w.e.f April, 2010.
For more information read 'Employees Provident Fund &
Miscellaneous Act" to know about "Employees Provident Fund"
and 'ESI Act' to know about "Employees' State insurance".
Provisions / Rules in any Statutory Act may be amended by
the government/s and this needs to be updated continuously
by reading or consulting the concerned department or
PF WILL BE CALCULATE ON BASIC SALARY UP TO 6500/- (i.e
EMPLOYEE 12% & EMPLOYER 3.67% PROVIDENT FUND A/C,8.33%
PENSION A/C,1.01% ADMIN CHARGES,.05% DLI CHARGES & .001
ADMN DLI CHARGES.) AND ESI WILL BE CALCULATE GROSS SALARY
15000/- i.e(1.75% EMPLOYEE & 4.75% EMPLOYER)