Pf & esic
This query is : Resolved
CA Anuj Mittal
(Expert)
24 April 2014
PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- 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
EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- 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.
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
EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- 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.
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