Esic and pf calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2018 Dear sir,

I am a bit confused about the calculation of ESIC and PF it needs to be calculated on earned salary or the total gross monthly fixed salary. Please clarify. If a employee is having salary 20000 monthly only esic is applicable but if he works only 15 days of the month than we need to pay pf also on the same. please clarify.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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15 June 2018 PF is calculated on Salary comprises BASIC + DA + Special allow, As per rules PF applicable 12% on basic salary up to Rs.15000/-. Beyond employer may restrict PF upto Rs.15000/- of Basic or he can exempt from PF deduction.

ESI is calculated on Gross Salary ceiling limit Rs.21000/-, above Rs.21000/- ESI not. Applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2018 sir but it will be calculated on earned salary or fixed gross monthly salary.

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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16 June 2018 Definitely parameters is applied on gross salary for apply of act but calculation done based on earned salary . If you exempt from ESI or PF as per gross salary, than ESI and PF not applicable earned salary is not criteria for limit its consider actual basic +da and gross earned.