Dear Experts,
Can you tell me the below given PF AND ESI details are correct or wrong.........? IT MAY USEFUL TO ALL MEMBERS..........
DETAILS OF EMPLOYEES STATE INSURANCE CORPORATION (ESI) ACT 1948 & EMPLOYEES PROVIDENT FUND SCHEME 1952 (EPF)
ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-
Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.
Whereas, PF is also been paid from both the sides..
Employee Side- 12% of Baic+DA & Food concession allowance & retaining allowance, if any)
So if Basic+DA & others of an employee is Rs 6500/month then
PF contribution would be 6500*12% = 780 Rupees
Employer side- 13.61% of Basic + DA & Food concession allowance & retaining allowance, if any)
gross/month
PF contribution would be 6500*13.61% = 885 Rupees.
Employer Contribution Splitting – 13.61 %
Provident Fund : 3.67%
Pension Scheme : 8.33%
Admin Charges of PF : 1.10%
EDLI : 0.5%
Admin Charges of EDLI : 0.01%
TOTAL : 13.61%
EDLI - Employee deposit link insurance
The maximum ceiling limit of PF - Rs.6500/- [ Limit Rs. 780/- (6500*12%) ]
If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.
Thank you,
PRASAD
CAclubindia
