27 June 2012
HI SIR THIS IS JAMES.VERY RECENLTY I GOT A CHANCE AS HR EXECUTIVE.FRON NEXT MONTH I MUST CALCULATE SALRIES .SO KINDLY PROVIDE ME SOME INFORMATION REGADING PF AND ESI CALCULATION.MY SALARY IS 10000,BASIC SALARY IS 4000 CONVEYANCE 800.HOW PF AND ESI R CALCULATED IN DETAIL WITH THESE DETAILS.
26 July 2012
PF is Povident Fund and ESI is Employee State Insurance.
Take a Careful look Suppose Yours salary is 10,000/- and you want to give the detail of your CTC, That would be-
10,000*12=1,20,000/-
1,20,000*1.75%=2100/-(E.S.I will not be counted becoz its not reimburse, and after 10,001/-above there will no ESI deducted)In ESI, suppose employee salary is exceeds Rs. 10,000/-. then ESI is not applicable. If it less than Rs.10,000/-
then on gross salary 1.75% emploees contribution and 4.75% is employer contribution.
1,20,000*12%=14,400/-(PF amount calculated only of Employer not yours becoz urs is included in your salary.)in case of pf employer-13.61% employee-12%
Pf is calculated on 12% of basic salary of employee.Both employee and employer should pay 12% each.In which the employee's 8.33% will go to pension scheme and remaining 3.67% added with PF account. Plus employer will be added 12% for PF .Total is 24%.
In Revised ESIC in 2011 , it is applicable for salary maximum Rs.15000.
Employee ESIC Share is :1.75% on gross salary. Employer ESIC Contribution is :4.75% on gross salary.
Companies actually pay their share of 4.75% of gross salary.. They do not deduct it from our salary.Just they are deducting 1.75% from our gross salary
Employee who while joining the organisation has a basic salary above Rs 6501/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 6501/- but after some period of time their basic increases above Rs 6501/- have to compulsorily continue to be member of provident Fund.
now Calculate the CTC that would be:- 1,20,000+14,440=1,34,440/-
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