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wages for PF and ESI Calculation

SANISH.KS (ACCOUNTS EXECUTIVE) (158 Points)

06 July 2011

Sir, I am Sanish working in a pvt ltd company based at cochin. I would like to know the wages calculation for PF & ESI. (In our company Basic, DA, HRA,TA,Allowance etc. are included)All these are calculated for PF & ESI. Please help me....Very urgent...My Email ID: Sanish.ks @ sify.com Regards Sanish

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Priya (student) (22 Points)
Replied 07 July 2011

Generally Basic wage and Dearness allowance are included in PF calculation.and while calculating ESI, gross salary is taken.

But according to a recent judgement in Madhya Pradesh High Court, any amount in the form of allowance paid to all employees on uniform basis must be included in Basic Wages for calculating PF.

nisar (service) (21 Points)
Replied 13 July 2011

Madam,

I too have read this judgement. What does it mean by UNIFORM basis. If allowances are vary employee to employee then what. Please throw light on it.

Thanking.

nisar5346 @ gmail.com

''Teach Fishing rather than giving Fish''

Originally posted by : Priya

Generally Basic wage and Dearness allowance are included in PF calculation.and while calculating ESI, gross salary is taken.

But according to a recent judgement in Madhya Pradesh High Court, any amount in the form of allowance paid to all employees on uniform basis must be included in Basic Wages for calculating PF.