Avail 50% discount on all subjects for Nov batch(access till Nov 20th). Use coupon code Nov14.

×
Home > Experts > Accounts > Calculation of ESI & PF


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Calculation of ESI & PF (Accounts)

Report Abuse
This query is : Resolved

Author : Anonymous

( Author )
06 November 2009

Dear Sir

I want to know Calculation and Accounting Entries of PF and ESI
Please tell me with illustration.

Thanking You:-



Ram Avtar Singh

( Expert )
07 November 2009

PF is deducted on Basic salary i.e Basic + DA is Rs. 15000/- or less above that PF is not deducted.
1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]

EDLI - Employee deposit link insurance


The maximum ceiling limit of PF - Rs.15000/-from 01/09/2014
If the basic + DA exceeds 15000/- than the contributions is optional. Some company may have their own company policies.

Provident fund is calculated towards the employers is 13.61%
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%

ESIC calculation:
-------------------
In this ESIC, it includes the medical benefit both for the employee and employer.
It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.15000/- p.m
Employee side - 1.75% and Employer side - 4.75%.
So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-
Employer 8000*4.75% = 380/-
Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 15000/- gross per month will not be applicable under ESIC act.
2. 20 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 15000/- or less per month.
Apart from that there is a tax deduction., it includes the Income & professional tax.

CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly)
gross pay + employers pf+employers ESI + bonus = CTC
i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.

CTC
-----
CTC is cost to company and the components are
Basic
+HRA
+CONVEYANCE
+MOBILE REIMBURSHMENT
+MEDICAL reimburshment
+All allowances
+LTA
+employer cotri of PF
+Employer Cotri towards ESI
+Total variable incentives
+Perks & benefits
+ insurance Premium (in case of Group insurance)

Gratuity calculation

t is been deposited @ 4.81% of Basic per month..
After completing 5 years of service one may claim Gratuity at the time of separation from the organisation and it is been paid @ 15 days of salary for per year of service...
Like for 6 years of experience one's gratuity will be calculated with this formula-


Kishor B

( Expert )
19 July 2012

bookmarked!


satpal

( Expert )
14 September 2012

Sh. Ram Avtar Ji Thanks for such a nice information ,


However I would like one correction in your record .i.e .

Max. Limit for ESI is Rs. 15000.00 now instead of Rs. 10000.00

Over all I am fully agreed with the information provided by you.

Thanks & Regards


CA PRAVEEN SINGH

( Expert )
20 November 2012

Agree with above..


CA AYUSH AGRAWAL

( Expert )
08 December 2012

wow...what a info by ramavatarji.......


PANKAJ KUMAR

( Expert )
06 March 2014

Nice information provided
keep it on ....!


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :









submit










Quick Links





back to the top