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 Categories >> Accounting >> Taxation

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Question
`How to Calculate the ESI,PF?it is basic Salary or Gross Salary?`
Question Submitted By :: Mahesh
I also faced this Question!!     Rank Answer Posted By

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 41
ESI amount for Employee on Gross Salary @ 1.75% on Rs.15000
W.E.F 01.05.2010 and Employer @ 4.75%.
PF 12% on Basic + DA for Employee and Employer Will also pay
12%, But Employer's contribution goes two ways .In this
employer contribution 3.67%
will goes to PF account rest of amount 8.33% will goes to
pension fund.EPS salary was maximum 6500/-.

 Is This Answer Correct ? 42 Yes 4 No
V.kalyanakumar

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 42
ESI is calculated on gross salary ie 1.75% of gross salary -
employee's share.
P.F is calculated on basic salary ie 12% of basic salary-
Employee's share.

 Is This Answer Correct ? 13 Yes 3 No
Shwetabajaj

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 43
ESIC will be calculate on gross salary employee share is
1.75% & employer share is 4.75% upto 10,000 Rs. but from 01-
may-2010 the esic deduction limit is 15,000.

Pf will be calculate on Basic+D.A. employee share is 12%
and employer share is also 12% but the total administ.chgs
is 1.61% which is bear by the company so now the employer
share of pf is 13.61 %, But the pf deduction limit is
complusory on 6500 wages. If any employee's wages is 8000
and he want to deduct his pf so it is opional.

 Is This Answer Correct ? 19 Yes 3 No
Dolly Jain

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 44
PF Deduct on basic salary 12%(Celling amount 6500/-)
some companies deduct basic salary 12%
some companies deduct celling amount 6500/-(780/-)

ESC Deduct on Gross Salary limit 10000/-
Employee contribution 1.75%
Employer contribution 4.75%
total 6.50%

 Is This Answer Correct ? 4 Yes 6 No
Eswararao Mml

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 45
Dear Friends,

PF is calculated on basic salary and it's 12% of basic. 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 basic salary is 11500 then there
is deduction of 1380/-.

And in PF there is contribution from emloyer also.
If PF is deducted 780/- from employee 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.

 Is This Answer Correct ? 6 Yes 3 No
Tejaswani.m.g

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 46
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.

 Is This Answer Correct ? 7 Yes 2 No
Tilak.m

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 47
PF will be calculated on Basic salary which should be 6500
or less then it.
and esi will be calculated on gross salary , limit of esi
from 01/05/2010 is Rs.15000
thanks

 Is This Answer Correct ? 4 Yes 0 No
Sunil Swami

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 48
Hi Friends,

Provident Fund is calculated 12 percent of Basic Salary up to 6500 by the employer and also 12 percent added by the P.F. Dept.So finally calculation is for the P.F. 12%+12% of Basic Salary.

ESI is calculated at the rate of 1.75% on the gross Salary up to 10000 salary of the employee and employers contribution is 4.75% and its aggregate is remitted to the ESI dept.
That's all i have friends,
Thanks

 Is This Answer Correct ? 4 Yes 2 No
Sandeep K Kanth

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 49
ESI Calculate on gross Salary or PF calculate on Basic
Salary.

 Is This Answer Correct ? 4 Yes 0 No
Mohd Ahar

Re: How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
# 50
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)

 Is This Answer Correct ? 5 Yes 2 No
Pratap Rao

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