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
Gross salary for ESI calculation is BASIC+DA+HRA+OTHER
FIXED ALLOWANCE LIKE OT OR INCENTIVE. My question is after
adding OT OR INCENTIVE gross salary crosses 10,000/- should
we deduct ESI or OT OR INCENTIVE does it include in salary.
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)
WE ARE THE DEALER WE PURCHASE MATERIAL WITH VAT & USE THE
SAME FOR LABOUR CHARGES + FINISHED GOODS BUSINESS &
BUSINESS SHARE OF THE SAME IS 85:15, CLEAR ME CAN I TAKE
FULL ADVANTAGE OF VAT CREDIT AGAINST MY VAT LIABILITY