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Salary deductions

kaustubh (B.Com) (32 Points)

10 January 2017

plz help...

if i have a ctc salary 20000 p.m then possibly what maximum amouny should be deducted from that.. company says dedcutions will be 6300p.m (pf, esic, pt). Is it correct or not ?

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 January 2017

Without breakup of consolidated figure, difficult to answer. However,

PF is deducted @ 12% of basic salary + DA (equal contribution by employer)
ESIC @ 1.75% of total salary (4.75% contributed by employer)
PT is state specific (varies from state-to-state).

Considering the usual practice of structuring salary, deduction of Rs.6300 seems to be more unless there are any other deductions.

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Anuj Sharma (CA FINAL) (203 Points)
Replied 11 January 2017

As i think Your employer is deducting both employee & employer share from your salary: For PF 20000 @ 12% 2400 Employee Share For PF 20000 @ 13.61% 2722 Employer Share For ESI 20000 @ 1.75% 350 Employee Share For ESI 20000 @ 4.75% 950 Employer Share Hence Total deduction is Rs 6422.