how to deduction ESI and PF

Dear friend

How to deduction ESI and PF, how much persentage deduction please help me friends

Thanking you

 

Replies (5)

if the deduction is to employees, then the provident fund deduction should be 12% of salary, as per the act, salary means Basic+DA+Food Concession+retaining allowance if any, subject to a maximum salary of Rs. 6500/- the same amount should be contributed by Employer.

ESI is applicable if the salary is only below or equals to Rs. 10000

Employers contribution will be 4.75%
Employees contribution will be 1.75%

 

Employer contribution = 13.61%(In the case of EPF)

Employee contribution = 12% (in the case of EPF)

Employee contribution = 1.75% (In the case of ESI)

Employer contribution = 4.75% (in the case of ESI) 

Mr. Vignesh and Pankaj both are correct

My Basic Rs 20000
Option # 1:
PF Deduction from Employee (12% on 20000) =Rs 2400
PF Contribution by Employer(12% on 20000) =Rs 2400 + 1.61% Admin charges

Option # 2:
PF Deduction from Employee (12% on 20000) =Rs 2400
PF Contribution by Employer(12% on 6500)  =Rs 780 + 1.61% Admin charges

Option # 3:
PF Deduction from Employee (12% on 6500) =Rs 780
PF Contribution by Employer(12% on 6500) =Rs 780 + 1.61% Admin charges

Please let me know which option is incorrect and give your reason to rectify the incorrect option.

Dear Anbuselvam

All the 3 options are correct. It depends upon the payroll policy being followed by the employer.

 

Dear Vignesh

ESI limit is 15000 and not 10000

 

Regards

Shivani

shivaniadream @ gmail.com

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