Calculation of esi & epf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Dear sir,

My query about ESI & EPF.

Sir please How are calculate of esi & epf.

Please Reply me

Regard

Prashant jha

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
Follow

27 July 2012 PF :
Employee contribution : 12% on basic

ESI :
EMPLOYEE contribution : 1.75 % on gross salary
its normal but ,

PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- or less above that PF is not deducted.
1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]

EDLI - Employee deposit link insurance

EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.

Provident fund is calculated towards the employers is 13.61%
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%

ESIC calculation:
-------------------
In this ESIC, it includes the medical benefit both for the employee and employer.
It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.10000/- p.m
Employee side - 1.75% and Employer side - 4.75%.
So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-
Employer 8000*4.75% = 380/-

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Sir i dont understand your answer.

So please sir understand me in simple word.

Thanks & Regard

Prashant jha

Upgrade to CAclubindia Pro. Subscribe Now!

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
Follow

27 July 2012 EPF :
from salary on basic - 12% employee contribution
13.61% employer contribution (it includes
8.33% - pension + 3.67 % -pf, + 1.1 % admin charges,+ 0.5% EDLI ,+0.01 % edli admin)

so you can deduct 12% only from employee . remaining the employer contribution

ESI :
employee contribution - 1.75% on Gross salary
employer contribution - 4.75% on gross salary