Respected Seniors, I just want to know in private organisation how they calculate the PF & ESIC ? can anybody help me out for this... Thanks & Regards, Binita
From India, Indore
From India, Indore
Hi,
For PF, it is calculated on Basic + DA. For example, if Basic + DA is 6500, then PF is calculated as 12% of that amount, which equals 6500 * 12 / 100 = 780 that can be deducted from employees.
For monthly challan preparation, if the total number of employees' Basic + DA wages is 6500, then:
Employee contribution Employer contribution
A/c 1- 12% i.e. 6500 * 12 / 100 = 780 3.67% i.e. 6500 * 3.67 / 100 = 238.55
A/c 2- - 1.1% i.e. 6500 * 1.1 / 100 = 71.5
A/10- - 8.33% i.e. 6500 * 8.33 / 100 = 541.45
A/C- 21 - 0.5% i.e. 6500 * 0.5 / 100 = 32.5
A/C- 22 - 0.01% i.e. 6500 * 0.01 / 100 = 0.65
Shrikant Talwar
From India, Pune
For PF, it is calculated on Basic + DA. For example, if Basic + DA is 6500, then PF is calculated as 12% of that amount, which equals 6500 * 12 / 100 = 780 that can be deducted from employees.
For monthly challan preparation, if the total number of employees' Basic + DA wages is 6500, then:
Employee contribution Employer contribution
A/c 1- 12% i.e. 6500 * 12 / 100 = 780 3.67% i.e. 6500 * 3.67 / 100 = 238.55
A/c 2- - 1.1% i.e. 6500 * 1.1 / 100 = 71.5
A/10- - 8.33% i.e. 6500 * 8.33 / 100 = 541.45
A/C- 21 - 0.5% i.e. 6500 * 0.5 / 100 = 32.5
A/C- 22 - 0.01% i.e. 6500 * 0.01 / 100 = 0.65
Shrikant Talwar
From India, Pune
Hi friends,
Can anybody help me with how to calculate salary, PF, ESI, and how to maintain attendance forms along with the related form numbers and procedures for PF, ESI, EPF? Which forms are useful and what should be attached, like Form 1, 2, etc.? I need full details with calculations on Deposit Linked Insurance and PF calculations in detail. Please help me.
-Srivani
From India, Bangalore
Can anybody help me with how to calculate salary, PF, ESI, and how to maintain attendance forms along with the related form numbers and procedures for PF, ESI, EPF? Which forms are useful and what should be attached, like Form 1, 2, etc.? I need full details with calculations on Deposit Linked Insurance and PF calculations in detail. Please help me.
-Srivani
From India, Bangalore
please help me how to calculate pf calculations,esi , salary calculations with detailed formula
From India, Bangalore
From India, Bangalore
Dear All,
Please let me know how the basic and DA percentage is decided in the private sector. In the private sector, is there a fixed minimum or maximum percentage for basic and DA?
I am awaiting a positive response.
Thanks,
Rashmi
From India, Mumbai
Please let me know how the basic and DA percentage is decided in the private sector. In the private sector, is there a fixed minimum or maximum percentage for basic and DA?
I am awaiting a positive response.
Thanks,
Rashmi
From India, Mumbai
Well, if you just want to know about the calculation method for PF & ESIC, then it's done in the following manner...
ESIC
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the Employee and Employer have to contribute to it.
3. The Employee Contribution percentage is 1.75%, and the Employer Contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, then my gross for that month would be 13,548.00. So, for the Employee Contribution of 1.75%, 13,548 * 1.75% = 237.09. However, as mentioned earlier, it should be calculated to the next higher rupee, so it will be 238.00. For the Employer Contribution of 4.75%, 13,548 * 4.75% = 643.53, but for ESIC it will be 644.00. Simply add them together, make a challan of it, and deposit it.
PF
PF is calculated based on Basic + Dearness Allowance. PF is calculated as 12% of that amount by both the employee and employer. The employee contribution is EPF (12%), while the employer contribution is divided into two parts: EPF (3.67%) and 8.33% (FPF).
For example, if one's gross is 13,000, then the basic would be 6,500.00 (50% of Gross and it varies). Employee Contribution - 6,500 * 12% = 780.00. Employer Contribution - 6,500 * 3.67% = 239.00. Employee Contribution - 6,500 * 8.33% = 541.00, but this contribution should not exceed 541.00 Rs. This is the calculation for an individual person.
If you need guidance on how to make a challan, feel free to reach out.
Hope this information helps you.
From India, Jaipur
ESIC
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the Employee and Employer have to contribute to it.
3. The Employee Contribution percentage is 1.75%, and the Employer Contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, then my gross for that month would be 13,548.00. So, for the Employee Contribution of 1.75%, 13,548 * 1.75% = 237.09. However, as mentioned earlier, it should be calculated to the next higher rupee, so it will be 238.00. For the Employer Contribution of 4.75%, 13,548 * 4.75% = 643.53, but for ESIC it will be 644.00. Simply add them together, make a challan of it, and deposit it.
PF
PF is calculated based on Basic + Dearness Allowance. PF is calculated as 12% of that amount by both the employee and employer. The employee contribution is EPF (12%), while the employer contribution is divided into two parts: EPF (3.67%) and 8.33% (FPF).
For example, if one's gross is 13,000, then the basic would be 6,500.00 (50% of Gross and it varies). Employee Contribution - 6,500 * 12% = 780.00. Employer Contribution - 6,500 * 3.67% = 239.00. Employee Contribution - 6,500 * 8.33% = 541.00, but this contribution should not exceed 541.00 Rs. This is the calculation for an individual person.
If you need guidance on how to make a challan, feel free to reach out.
Hope this information helps you.
From India, Jaipur
No, there is no any fix % but in Metro cities it’s 50 % of gross and Non-Meto cities it’s 40 % of gross... but again it’s on company policy..
From India, Jaipur
From India, Jaipur
Respected Sir/Madam, Thank You so much for giving me this PF & ESIC Calculations. will get back to you if i will come across any Query. Regards, Binita
From India, Indore
From India, Indore
Dear All,
I am in a huge confusion regarding the pay structure. Please let me know about the following terms:
1. CTC
2. GROSS
3. NET
As per my understanding:
NET + (EMPLOYEE'S CONTRIBUTION OF PF + EMPLOYEE'S CONTRIBUTION OF ESIC) = GROSS
GROSS + (EMPLOYER'S CONTRIBUTION OF PF + EMPLOYER'S CONTRIBUTION OF ESIC + PTAX) = CTC
If this is correct, then the salary breakup of Employee "A" would be:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF (EMPLOYEE) 1152
PF (EMPLOYER) 1152
PTAX 130
Gross 19200
CTC 21634
Take Home 19070
However, the company is offering:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF 1152
Gross 19200
CTC 20352
Take Home 18048
Could you please confirm which one is correct? This is urgent, and I would appreciate your help.
Somdatta Neogi
9903068598
Kolkata (W.B.)
From India, New Delhi
I am in a huge confusion regarding the pay structure. Please let me know about the following terms:
1. CTC
2. GROSS
3. NET
As per my understanding:
NET + (EMPLOYEE'S CONTRIBUTION OF PF + EMPLOYEE'S CONTRIBUTION OF ESIC) = GROSS
GROSS + (EMPLOYER'S CONTRIBUTION OF PF + EMPLOYER'S CONTRIBUTION OF ESIC + PTAX) = CTC
If this is correct, then the salary breakup of Employee "A" would be:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF (EMPLOYEE) 1152
PF (EMPLOYER) 1152
PTAX 130
Gross 19200
CTC 21634
Take Home 19070
However, the company is offering:
Basic 9600
HRA 2880
City Compensation Allowance 2880
Conveyance Allowance 1920
Education Allowance 1920
PF 1152
Gross 19200
CTC 20352
Take Home 18048
Could you please confirm which one is correct? This is urgent, and I would appreciate your help.
Somdatta Neogi
9903068598
Kolkata (W.B.)
From India, New Delhi
Your company offering you is correct, and in a simple way. CTC stands for Cost to Company, which is Your Gross Amount plus other costs that the company pays for you. Gross is the amount that the company agrees to give you for your work, and Net is the amount that remains after deductions.
From India, Jaipur
From India, Jaipur
I know how to calculate PF, but in case one employee is getting a basic salary of more than 6500/- per month, how should his PF, EPF, EDLIS, etc., be calculated?
For example:
- Basic: 12000
- D.A: 1615
Can anybody tell me the amount of contribution for the following accounts:
A/c - 1
A/c - 2
A/c - 10
A/c - 21
A/c - 22
From India, Nasik
For example:
- Basic: 12000
- D.A: 1615
Can anybody tell me the amount of contribution for the following accounts:
A/c - 1
A/c - 2
A/c - 10
A/c - 21
A/c - 22
From India, Nasik
Well, if anyone is earning more than 6500, there are two conditions to consider:
1. If the employee is receiving PF and their basic salary exceeds 6500, they must contribute.
2. If the basic salary has been above 6500 from the beginning, the company, if willing to deduct their PF, can do so under the following conditions:
A. Deduct based on the actual basic salary, regardless of whether it is above or below 6500.
B. If the employee's basic salary is above 6500, deductions should be limited to 6500.
Both conditions are correct.
From India, Jaipur
1. If the employee is receiving PF and their basic salary exceeds 6500, they must contribute.
2. If the basic salary has been above 6500 from the beginning, the company, if willing to deduct their PF, can do so under the following conditions:
A. Deduct based on the actual basic salary, regardless of whether it is above or below 6500.
B. If the employee's basic salary is above 6500, deductions should be limited to 6500.
Both conditions are correct.
From India, Jaipur
Hi all,
How to calculate PF?
For example, if one person's gross pay is 7000/-, then the basic + DA will be around 4200/-. We calculate PF (12%) on (basic + DA) from both the employee and employer, which equals 4200 * 12% = 480/-.
ESI: Calculation is done on the gross salary. For instance, if the gross salary is 7000, we calculate ESI at 1.75% from the employee and 4.75% from the employer. This results in ESI being 123/- from the employee and 333/- from the employer.
Professional tax: According to Form-5, specific details can be obtained. For a gross salary of 7000/-, professional tax will be 80/-. These amounts are deducted from the gross salary, and the remaining deductions are referred to as take-home pay or net salary.
Including employer contributions is termed CTC (Cost to Company).
If there are any mistakes, please point them out.
Thanks & regards,
Ratnakar
From India, Hyderabad
How to calculate PF?
For example, if one person's gross pay is 7000/-, then the basic + DA will be around 4200/-. We calculate PF (12%) on (basic + DA) from both the employee and employer, which equals 4200 * 12% = 480/-.
ESI: Calculation is done on the gross salary. For instance, if the gross salary is 7000, we calculate ESI at 1.75% from the employee and 4.75% from the employer. This results in ESI being 123/- from the employee and 333/- from the employer.
Professional tax: According to Form-5, specific details can be obtained. For a gross salary of 7000/-, professional tax will be 80/-. These amounts are deducted from the gross salary, and the remaining deductions are referred to as take-home pay or net salary.
Including employer contributions is termed CTC (Cost to Company).
If there are any mistakes, please point them out.
Thanks & regards,
Ratnakar
From India, Hyderabad
Thanks a lots for the information. Will you please provide list of two and three wheeler parts manufacture companies at Maharashtra which company manufacture ? Plz its urgent Thanks, Rashmi
From India, Mumbai
From India, Mumbai
Well, if anyone's gross salary is greater than 15000.00, the condition for ESIC does not apply. If the basic salary is greater than 6500.00, there are two conditions to consider:
A. Deduct based on the actual basic salary.
B. Restrict the calculation up to 6500.00.
From India, Jaipur
A. Deduct based on the actual basic salary.
B. Restrict the calculation up to 6500.00.
From India, Jaipur
Hi, I have one doubt. If the basic salary is 15000, then what would be the employee's contribution at 12%, i.e., 15000 * 12% = 1800? The employer's contributions for EPF are 8.33% and for EPS are 3.67%, i.e., 15000 * 8.33% = 1250 and 15000 * 3.67% = 550. Is the above calculation correct or incorrect?
From India
From India
hi....reshma pls. go through the file attached below of Minimum Wages + Spl. allowances As per the zone wise in MAharashtra Shrikant Talawar
From India, Pune
From India, Pune
Dear Nitesh,
I agree with your opinion. Could you please confirm if there is any percentage of expenses distribution in the Profit & Loss account? For example, Salary equals 12% of sales/GP, Wages account for 25% of sales, and Office Expenses amount to 5% of sales.
Please email me at nk96093@gmail.com. Thank you.
Kind regards,
[Your Name]
From India, Chennai
I agree with your opinion. Could you please confirm if there is any percentage of expenses distribution in the Profit & Loss account? For example, Salary equals 12% of sales/GP, Wages account for 25% of sales, and Office Expenses amount to 5% of sales.
Please email me at nk96093@gmail.com. Thank you.
Kind regards,
[Your Name]
From India, Chennai
Hi Balaji this is Sweta I want to know how we can make challan With Best Regards, Sweta Sharma
From India, New Delhi
From India, New Delhi
Sir, My question is my basic salary is 6500 but my gross salary is 10374 (26 days) and my Pf Deduction of Rs 1244/-, it is correct or not. what is process of basic to gross salary
From India, Delhi
From India, Delhi
Dear Mr. Nitesh Barman,
You have explained the same in a very useful manner. I would like to make some corrections in the below-mentioned point. Instead of "employee," it should be "employer contribution," and the revised limit for the pension is 1250.00 instead of 541.00.
Employer Contribution - 6500*8.33% = 541.00, but this contribution should not be more than 1250.00 Rs.
From India, Bharuch
You have explained the same in a very useful manner. I would like to make some corrections in the below-mentioned point. Instead of "employee," it should be "employer contribution," and the revised limit for the pension is 1250.00 instead of 541.00.
Employer Contribution - 6500*8.33% = 541.00, but this contribution should not be more than 1250.00 Rs.
From India, Bharuch
PF is deducted on Basic salary i.e Basic + DA is Rs. 15000/- or less above that PF is not deducted/ optional effective from 1st January 2015.
1) Employee –12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) 2) Employer –13.36 % (of Basic + DA & Food concession allowance & retaining allowance, if any) [13.36% = 3.67 % PF + 8.33 % Pension Scheme + 0.85 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
2) EDLI - Employee deposit link insurance
A. The maximum ceiling limit of PF - Rs.15000/-from 01/09/2014 If the basic + DA exceeds 15000/- than the contributions is optional. Some company may have their own company policies.
B. Provident fund is calculated towards the employers is 13.61% 1. Employers Contribution 2.EPF A/c No.1 - 3.67% 3.EPF - Admin Charges - 1.1% 4.Pension Fund A/c No.10 - 8.33% 5.EDLI A/c No.21 - 0.5% 6.EDLI - Admin Charges - 0.01%
3) ESIC Calculation :
A. In this ESIC, it includes the medical benefit both for the employee and employer.
B. It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.21000/-p.m.
C. Employee side - 1.75% and Employer side - 4.75%.
D. So if the gross of an employee is 8000/- p.m. his contribution would be 8000*1.75% = 140/- Employer 8000*4.75% = 380/-
E. Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 21000/- gross per month will not be applicable under ESIC act. 2.
2. 10 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 21000/- or less per month. Apart from that there is a tax deduction. it includes the Income & professional tax.
4) CTC :
A. CTC means cost to the company. i.e .what are all the expenses incurred by the Company for any of its employee for a particular period (monthly/yearly)
B. Gross pay + employers pf+employers ESI + bonus = CTC
C. I.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
D. CTC is Cost to Company and the components are below :
E. Basic Salary
F. + House Rent Allowances
G. + Conveyance Allowance
H. + Children Education Allowances
I. +MOBILE REIMBURSHMENT
J. + Medical Allowances
K. + Additional Allowances
L. +LTA
M. +Employer contribution of PF
N. +Employer contribution towards ESI
O. +Total variable incentives
P. + Insurance Premium (in case of Group insurance)
5) Gratuity Calculation:
It’s been deposited @ 4.81% of Basic per month.
After completing 5 years of service one may claim Gratuity at the time of separation from the organization and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-
6) EPFO has cut the administrative fee charged from employers effective from 1st January 2015.
A. EPF Admin Charges
B. Existing Rate- 1.10 % of Total EPF Salary
C. New Rate - 0.85 % of Total EPF Salary
D. Minimum Rs 5 in case of Non Contributory Member
E. Minimum Rs 75 Per Month in case of non-functional establishment having no Contributory member
F. Minimum Rs 500 for Contributory Members
7) EDLI Admin Charges
A. Existing Rate – 0.01 % of Total EDLI Salary
B. New Rate – 0.01 % of Total EDLI Salary
C. Minimum Rs 2 in case of Non Contributory Member
D. Minimum Rs 25 Per Month in case of non-functional establishment having no Contributory member
E. Minimum Rs 200 for Contributory Members
Thanks Best Regards!!
Vijay Tiwari |
Mo. 9871838528
From India, Delhi
1) Employee –12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) 2) Employer –13.36 % (of Basic + DA & Food concession allowance & retaining allowance, if any) [13.36% = 3.67 % PF + 8.33 % Pension Scheme + 0.85 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
2) EDLI - Employee deposit link insurance
A. The maximum ceiling limit of PF - Rs.15000/-from 01/09/2014 If the basic + DA exceeds 15000/- than the contributions is optional. Some company may have their own company policies.
B. Provident fund is calculated towards the employers is 13.61% 1. Employers Contribution 2.EPF A/c No.1 - 3.67% 3.EPF - Admin Charges - 1.1% 4.Pension Fund A/c No.10 - 8.33% 5.EDLI A/c No.21 - 0.5% 6.EDLI - Admin Charges - 0.01%
3) ESIC Calculation :
A. In this ESIC, it includes the medical benefit both for the employee and employer.
B. It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.21000/-p.m.
C. Employee side - 1.75% and Employer side - 4.75%.
D. So if the gross of an employee is 8000/- p.m. his contribution would be 8000*1.75% = 140/- Employer 8000*4.75% = 380/-
E. Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 21000/- gross per month will not be applicable under ESIC act. 2.
2. 10 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 21000/- or less per month. Apart from that there is a tax deduction. it includes the Income & professional tax.
4) CTC :
A. CTC means cost to the company. i.e .what are all the expenses incurred by the Company for any of its employee for a particular period (monthly/yearly)
B. Gross pay + employers pf+employers ESI + bonus = CTC
C. I.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
D. CTC is Cost to Company and the components are below :
E. Basic Salary
F. + House Rent Allowances
G. + Conveyance Allowance
H. + Children Education Allowances
I. +MOBILE REIMBURSHMENT
J. + Medical Allowances
K. + Additional Allowances
L. +LTA
M. +Employer contribution of PF
N. +Employer contribution towards ESI
O. +Total variable incentives
P. + Insurance Premium (in case of Group insurance)
5) Gratuity Calculation:
It’s been deposited @ 4.81% of Basic per month.
After completing 5 years of service one may claim Gratuity at the time of separation from the organization and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-
6) EPFO has cut the administrative fee charged from employers effective from 1st January 2015.
A. EPF Admin Charges
B. Existing Rate- 1.10 % of Total EPF Salary
C. New Rate - 0.85 % of Total EPF Salary
D. Minimum Rs 5 in case of Non Contributory Member
E. Minimum Rs 75 Per Month in case of non-functional establishment having no Contributory member
F. Minimum Rs 500 for Contributory Members
7) EDLI Admin Charges
A. Existing Rate – 0.01 % of Total EDLI Salary
B. New Rate – 0.01 % of Total EDLI Salary
C. Minimum Rs 2 in case of Non Contributory Member
D. Minimum Rs 25 Per Month in case of non-functional establishment having no Contributory member
E. Minimum Rs 200 for Contributory Members
Thanks Best Regards!!
Vijay Tiwari |
Mo. 9871838528
From India, Delhi
Dear Mr. Nitesh,
How did it come to -13548? Please justify in detail.
ESIC:
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the employee and employer have to contribute to it.
3. The employee contribution percentage is 1.75%, and the employer contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, my gross for that month would be 13,548.00. Therefore, the calculation would be as follows:
- Employee Contribution: 1.75% of 13,548 = 238.00
- Employer Contribution: 4.75% of 13,548 = 644.00
Total the contributions, create a challan, and deposit the amount.
Thank you.
From India, Chennai
How did it come to -13548? Please justify in detail.
ESIC:
1. ESIC is deducted for those employees whose gross salary is not more than 15,000.00 per month.
2. Both the employee and employer have to contribute to it.
3. The employee contribution percentage is 1.75%, and the employer contribution percentage is 4.75% of the gross salary.
4. It should be calculated using the next higher rupee method.
For example, if my gross salary is 15,000.00 and I worked 28 days in January, my gross for that month would be 13,548.00. Therefore, the calculation would be as follows:
- Employee Contribution: 1.75% of 13,548 = 238.00
- Employer Contribution: 4.75% of 13,548 = 644.00
Total the contributions, create a challan, and deposit the amount.
Thank you.
From India, Chennai
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