ESI & PF

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Tarun

Tarun (Querist)
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10 April 2010 What is the maximum %age of ESI and PF an employer can statutorily deduct from employee's salary ???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 April 2010 Presently (employees contribution) to

PF = 12% of Basic
ESI = 1.75% of basic

Tarun

Tarun (Querist)
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10 April 2010 Thank You for your quick response Ramesh Sir ...
But i still have a doubt regarding Employee's contribution to PF ...
Isn't it 10% ?? {Sec 6 as amended by EPF and MP Act, 1988}
However employee can on his discretion contribute more than this %age ..
Right ??

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kartik_somu

kartik_somu (Expert)
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11 April 2010 the rate for PF is 12 %. An employee may voluntarily contribute higher % of salary.

PF is calculated on basic and DA.

ESI is calculated on gross salary

Tarun

Tarun (Querist)
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12 April 2010 Ok ...
Thank u Kartik g and ramesh g ..