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Basic salary on ctc

Govind (JOBS) (181 Points)

28 June 2016

Dear Respected , I want to some confusion in one of employee , Mr. X . Its Salary is Ruppees 18,600/- PM , Rs 2,23,200/- Per Annum . Please clarify that . What is basic salary , House Rent Allowance , Conveyance , Medical Allowance , ESIC , Bonus ,Children Edu. Allowance , ETC. Facility . advice full details with government section rules .

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3293 Points)
Replied 29 June 2016

ESI is the deduction on Gross Salary. 1.75% is deducted from the employee's salary and 4.75 is added to the deducted amount and total of 6.5% is paid to the ESI corporation. The ceiling limit for the ESI subscripttion is Rs 15,000 Gross Salary.

Rule 51 of The Employees' State Insurance (Central)Rules,1950 , which substituted by G.S.R 316, dted 26 th August,2004 and as corrected by GSR 58 dated 19 th January 2005 provides for the Rates of Contribution -The amount of contribution for a wage period shall be in respect of ,-
Employer's contribution-, a sum (rounded to the next higher rupee) equal to 4.75% of the wages payable to an employee ;
Employees's contribution-a sum (rounded to the next higher rupee) equal to 1.75% of the wages payable to an employee
Rule-50 provides for Wage limit for coverage of an employee under the Act is Rs. 15000/- wef 1/5/2010