how to deduction ESI and PF

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