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Salary components

Sowmya S (CAO) (214 Points)

04 January 2013

Dear All,

My salary has been increased from Rs.18,000/- p.m to Rs.25,000/-p.m w.e.f.01.01.2013.

For all these months i used calculate EPF on my (Basic+DA) & ESI on (Gross Salary - Conveyance).

Can anybody plz bifurcate Rs.25,000/- which should cover ESI also, as ESI is not allowable for those whose salary exceeds Rs.15,000/-p.m.

At the same time, bifurcation should me in such a manner that all the deductions/exemptions have to utilised optimally.

Thanks & Regards

Sowmya.S

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5 Replies

Rajesh (Service ) (7576 Points)
Replied 04 January 2013

As you have already mentioned the maximum limit of ESI. You should be cross the max limit of ESI. As concern to the PF, maximum limit of Basic 6500/-. If your Basic salary + DA is more than Rs. 6500/- permonth then you need not pay PF also.

You are asking about Bifurcation then you can calculate that

Basic (As co Decided)

HRA (50 % of Basic)

Conveyance 800 per month

PF 12 % of Basic + DA

And other perks as per company norms.

Rajesh

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Sowmya S (CAO) (214 Points)
Replied 04 January 2013

Dear Mr.Rajesh,

What if the company is ready to pay EPF contribution even if Basic+DA exceeds Rs.6,500/-?

Will that expense for the company be disallowed?

Rajesh (Service ) (7576 Points)
Replied 04 January 2013

The PF limit of Rs. 6500/- is mandatory as per PF act. If you are getting more than this limit you & your employer can deposit voluntary contribution.

Rajesh

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Sowmya S (CAO) (214 Points)
Replied 09 January 2013

Dear Mr.Rajesh,

Kindly let me know what is voluntary contribution?

Rajesh (Service ) (7576 Points)
Replied 10 January 2013

Voluntary Provident Fund is a safe option wherein you can contribute more than the PF ceiling of 12% that has been mandated by the government. This additional amount enjoys all the benefits of PF except that the employer is not liable to contribute any extra amount apart from 12%. Please note that the maximum contribution towards VPF is 100% of your Basic + DA.

Rajesh