Esi And Pf Queries Doc Download

Hi Seniors,

I know PF contribution is 12% of the CTC and ESI contribution is 1.75% of the CTC. Please suggest to me how much the employer contribution should be?

Regards,
Anita

Hi Anita,

Employees Provident Fund covers three schemes with contributions of 12% from employees and 13.61% from the employer's side:
1. Family Pension Scheme: 8.33%
2. Provident Fund: 3.67%
3. Link Insurance Scheme: 0.5%
4. Administrative Expenses paid by the employer: 1.61%

Employees' contributions are deducted from Basic + DA. Organizations with 20 or more employees are covered under the scheme. The minimum salary required is Rs. 6500 per month.

ESI deductions include 1.75% from employees and 4.75% from the employer. The calculation is based on Basic + DA, and employees earning Rs. 50 per day are eligible for coverage.

Dear Ms. Anitha,

PF will be calculated in Basic + DA. Employee contribution is 12%, and employer contribution is 12%. Apart from this, the employer should pay the administrative charges and EDLI (Employees' Deposit Linked Insurance) charges.

For ESI, the employee contribution is 1.75% of the Gross Amount, and the employer contribution is 4.75%, making it a total of 6.5%.

Hope you now have a better understanding of this.

Regards,
Saravanan J

Hi Saravanan,

Please do correct me if I am wrong. The calculation of EPF is as follows:
- Employer contribution: 12%
- Employee contribution: 12%
- Family Pension Scheme: 8.33%
- PF Scheme: 3.67%
- Link Insurance Scheme: 0.5%
Total: 12%

Additionally, the administrative expenses of 1.61% are paid by the Employer.

Thank you.

Dear Anita,

PF DEDUCTION:
EMPLOYEE = 12% (OF BASIC SALARY)
EMPLOYER = 12% (OF BASIC SALARY) + ADMIN CHARGES = 1.61% (OF BASIC SALARY)

ESI DEDUCTION:
EMPLOYEE = 1.75% (OF GROSS SALARY)
EMPLOYER = 4.75% (OF GROSS SALARY)

Regards,
Pankaj Chandan

Hi Seniors,

Thank you very much for your information. I am now very clear on this part.

Another question I have is, can PF be withdrawn at the end of service? What about ESI? Please assist me with this.

Regards,
Anita

Hi Seniors,

Will both the employer and employee contributions for PF be deducted from the employee's pay? I am a bit confused about this.

Regards,
Anita

Dear Anita,

The employer contribution in PF is 13.61%. It is divided into 5 accounts in the PF Challan: 3.67%, 8.33%, 1.10%, 0.01%, and 0.05%.

Thank you.

No, the employee contributes 12% of his salary. The other part of the PF will be paid by the employer.

I suppose Priya is right; employer contributions are as follows:

- Pension: 8.33%
- PF: 3.67%
- DLI: 0.5%
- Admin Exp: 1.61%
- ESI: 4.75%