How to calculate pf, esi, vat, sales tax etc.,
Answer Posted / tejaswani
PF : Provident fund is calculated @ 12% on the basic
salary, (Basic Salary Rs.6500*12/100 = 780) which indeed is
deducted from Employee's salary and the same plus 12%
(Rs.6500*12/100=780) on the basic is contributed by the
employer. So the aggreate 12% + 12% is remitted to the
Provident fund Department and deposit 3.67% in the A/c No.1
provident fund and remaining 8.33% in A/c No.10 of Pension
fund (which is calculated on the maximum limit of PF
Rs.6500/-).
ESI : Employee State Insurance is calculated at 1.75% on
the gross salary of the employees whose salary is below Rs.
10000/-permonth (w.e.f 2008) and Employer contributes 4.75%
on the gross salary of the employee and the agreegate 1.75%
+ 4.75% is remitted to the ESI Department
| Is This Answer Correct ? | 25 Yes | 2 No |
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