PF, ESI related

This query is : Open

Nandesu (Querist)
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12 January 2009 HI,

My self is an Accounts Officer working in a MNC dealing with BPO Services. We are having the PF registration and have been deducting the PF according to their Basic salary and depositing the same in SBI and also depositing the monthly returns.

Regarding the same I wanted to know the following:
1. Lets say if aemployee's Break up is Basic Salary = 6500.00, HRA= 3250, Conveyance All = 800, Medical All = 1250 & Spl All = 1200.00 amountind a package of Rs. 13000.00. The his PF deduction will be 780.00 and what is the criteria for ESI deductions???
and
2. If the salary of the employee increases from 13000.00 to 20000.00 then his break up would be Basic salary = 10000.00, HRA=5000, Conveyance=800, Medical all=1250 & Spl All=2950.00. Now my Question is PF will be deducted 780.00 (as it is the maximum level) and the break up is what I have given. IS ir OK or something different?

and
3. what is the eligibility criteria of ESI deductions and what is the procedure and how it can be implemented.

Please give the answers andf I will be highly obliged.

Thanks & Regards
Someshwar Rao
09999009827

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)
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12 January 2009 1. ESI will be applicable when the employees groos pay is less than Rs.10000. So in this case no ESI.

2. You can deduct Rs.780/- from employees salary as PF deduction, because the maximum limit given by the Act is Rs.6500 (Basic + DA). Voluntary higher contributions are also acceptable at the joint request of the member and the employer.