Pf & esi

This query is : Resolved

MD.AKHTARUZZAMAN ANSARI (Querist)
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05 October 2012 sir we need your help for caculation of ESI and EPF for wages of workers in our company on for folloing details:-
1.BASIC 8500 HRA 1500
2.BASIC 8100 HRA 1400
3.BASIC 5300 HRA 700
4.BASIC 6750 HRA 1000
EMPLOYER CONT PF 12.5% ESIC 4.75%
eMPLOYEE CON 12.5% 1.75%

Rathin Roy

Rathin Roy (Expert)
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08 October 2012 A. In none of these cases the total salary exceeds Rs. 15,000, so employer's contribution would be 4.75% of the total in each case and employees' contribution (to be deducted from them and deposited) would be 1.75% in each case
B. (i) For employee number 1,2 and 4, since the Basic exceeds exemption limit of Rs. 6500, no PF needs to be contributed by employer - however if the company as a policy contributes PF for everyone then they may deposit for these employees also - in that case they may contribute upto the basic of Rs. 6500 only and ignore the excess, they may also contribute on the entire salary if they wish.
ii)Also please note that in case the basic of any of these employees was less than 6500 earlier and the company was contributing PF for them, then once their basic is increased to a figure more than 6500,the liability of the employer remains to contribute upto Rs. 6500.

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