How to Calculate the ESI,PF?it is basic Salary or Gross Salary?
Answer Posted / h.r. sreepada bhagi
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
experts/consultants.
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