Help me calculate salary breakup manually if the salary is either Rs.15000 or Rs.19000 and should be provided PF ESI?

Hi, Could you please help me calculate salary breakup manually if the salary is either Rs.15000 or Rs.19000 and should be provided PF ESI? Please give your valuable suggestions for calculating the manual.

Dear Sanjay.

1. As per Statutory Norms of Government, In a salary break-up - if total gross earnings of an employee (after deducting Washing Allowances, if available ) is less than Rs.22000/-, then he is eligible for ESIC deduction.

2. But, it also depends on which state the employee is working, as ESIC differs between state to state, as in certain states ESIC is not being deducted for widows. Just check it.

3. PF should be deducted compulsory, if staff pay is less than or equal to 15000. if it's above 15000, it's not mandatory, but as per management consent, it could deducted either flat 1800/- every month or 12% on Earned Basic+DA of every month.

I will share an example shortly. Have a look at it.

Thank You.

Dear Sanjay.

To calculate a break-up, it's necessary the following details:

1. State of employment, as we need to verify minimum wages act for skill category, in order to arrive basic pay in that place - if we need to hire an employee.
2. Category of employment (Skilled/Semi-Skilled/Under-Skilled).
3. Whether pay you have specified 15000 or 19000 is Gross Pay or Net Pay or CTC? Confirm this as well.
4. Nature of industry. Because, In Hospital Sector - Washing allowances excluded from Gross earnings, while arriving ESIC Calculation. That's the reason.

With this details, i can share the break up and explanation.

Thank You.