News, Terms of Service 15000/- or 12% of employee wages. Privacy Policy Minimum 20 eligible employees … Ltd |All Rights Reserved, Cookies are important to the proper functioning of this site. employer esic 1075 and employee esic is 396 so total amount 1471 that is also part of my ctc. It is effective from 1st July 2019. our company was deduction the PF Contribution Rs. Baisc – 11200/- In addition to these you can voluntary contribute as employee contribute over and above of fixed or 12% of basic salary and employer will contribute only capped amount. Generate Pay Slips According to Own Preference including Company Logo, Salary Paid up to Previous Month, Salary Period and Other Significant Details State-Wise Professional Tax Forms Get All the Relevant Forms for the Employees including Monthly ESI, ESI Challan, Form-5, Form-6, Form-7, Form-1 (Declaration Form) … The employer contribution would be 3.25%, i.e. Company esi contribute – 0 G.S.R. 2 (PF Admin ac.) If employer has to pay monthly ESIC and PF contribution then can we recover employers contribution (12% for PF and 3.25% for ESIC) from employee. company and employee, then both the contributions will deduct from your salary otherwise only employee contribution will deduct from your salary. Gross per month is 40000, employer capped the same @15000 for employer contribution. The scheme also provides medical help to the family members of the registered employees. If you wish to start again, its is better to check legal implications. An intelligent enterprise-ready HCM suite that automates HR processes, simplifies human interactions and deliver actionable insights to build better workplaces. because my appointment letter disclosed CTC Salary Yes, there is an option available with employers to deduct PF on capping wages i.e 15000/- per month. – Employee-12%; Employer-3.67% Rs 3600/-, would update in your EPF account and bifurcation would be (1800+550=2350) goes to your PF fund and 8.33% i.e. If the esic payment of the workers is not made, can there be any problem while returning the pf? Than you for your reply.. From last two years we crossed the salary level 15000/month and from 2018 our PF deduction was stopped. Even if the employee’s salary exceeds Rs 15,000, the employer is liable to contribute only Rs 1,800 (12% of Rs 15,000). The Seventh Pay Commission recently recommended that only the first 365 days of leave should be granted with full pay, while the remaining 365 can be availed at 80 per cent of the salary. Ideally your total PF amount i.e. According to the EPF rules, any Firm which has a minimum of 20 employees has to be registered with the Employees’ Provident Fund and Miscellaneous Provisions Act. From April 2019, my PF amount is deducted 12% of gross salary less HRA payable means (basic payable+DA payable+CCA payable+Special Allowance+ Local conveyance+ tiffin allow payable). 21,000 during the contribution period (explained next), the ESI contributions would be calculated on the new salary and not Rs 21,000. Is form 15 mandatory? 1800 at a rate of 12%. There are some changes. 3) A/C No. please give me the correct solution at the earliest, There are three rules for PF calculations The annual bonus or retrenchment compensation or encashment of leave and gratuity are not included in the salary. If changed kindly provide the update calculation. WHICH ONE IS CORRECT – CTC OR GROSS SALARY Step 1: Enter the salary, For e.g. Please tell me.. I’m so confused. Any organization having 10 or more employees, drawing the wages of up to Rs.21,000 per month are required to be registered for ESIC under the ESIC Act 1948. is that neccesary to deduct the pf contribuation for a daily wages employees. Yes your Basic salary is 15000 and it deduted Rs. Gratuity 722 It may differ with different PF rules as there are three PF rules 1) 12% of basic+DA 2) 12% of basic+DA with 1800 Maximum capping. Regarding Medical benefits : This depend upon the company policy. Total CTC -33000, So I am ask you sir/mam what will be my PF deduction as per rule. ... , Encashment of leave and gratuity, Annual bonus (Diwali bonus etc). White Papers If no , then is it legal ? – Employee-12%; Employer-3.67% Thank you, Your PF deduction would depend on your company policy. it is possible or not. But there are some critical diseases covered after certain periods that ESIC officials/doctors may guide you better. 1800/- from employee and 1800/- from employer contribution. ESIC is an application for employees whose gross salary is 21000 or less per month. The factory act is applicable on the firm where the work order was issued. Till final notification, you can deduct PF only on Basic component of a salary structure. Every Best Employee Will Leave, You Better Stay Prepared. Hi, i have one query regarding ESIC deduction i.e ” the employer can deduct employer’s share of contribution from the wages of employees? Your gross salary is not matching with shared values i.e 21500+7200+1500= 30200/- please check your gross salary. Please help . In case employer contribution is outside from CTC breakup then your ESIC contribution will be added in your monthly salary and net payment will increase accordingly. 22,000 per month, then the ESI would be calculated on Rs. I have Attached PF & ESI CALCULATION SHEET EXAMPLE PF Calculation Sheet Month 31 S.No. … Hi Sir, hrtvm. You could calculate salary on the basis of the total number of days between 21 and 20 (similar to the calendar day logic). 2) 12% of your basic salary and capped at 1800/- Download free payroll software for trial or book free Demo @+91 9999999364. Gross is 28,003 For each day by which the contribution of ESI is delayed, the registered employer is charged a simple interest of 12% per annum. It is purely specific to your company policy. How???? Can we deduct EPF, ESI of the employee ? Is it important to give EPS to the employees? which allowance does not include in pf calculation other than HRA? For EPF, both the employee and the employer contribute an equal amount of 12% of the monthly salary of the employee. Is it mentioned as discretionary to the choice of employer? 2100 MED ALLOWANCE 3905 PF DEDUCTION 1200 IT IS RIGHT OR NOT. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. An employer is expected to deposit the combined contributions within 15 days of the last day of the Calendar month. The ESIC has collaborated with a number of hospitals PAN India available on the ESIC online portal where one can claim the ESI amount. Mr. X. has a salary the following salary components. Revised ESI Contribution Rates (Employer 3.25%, Employee 0.75%): MoLE (GoI) Notification dt. Basic is 8398 Please send voluntarily PF minim and Rules. my mother has a disease named “Ascites”, I have to admit her in hospital every month, Kindly Tell me the briefly answer so that i can feel better without any confusion. Esic -83 ru. IS IT CORRECT. 407. my pf deduction 12%,3.67%,8.33% ESIC calculation as per ESIC rules of act 1948 ESIC includes the medical benefit both for the employee and employer. Hi, can you help me with the clarification of PF calculation, as you said PF is calculated as per revised PF rules, if the employee’s basic salary is less than 15000/- then pf deduction will be calculated @12% on monthly gross salary excluding HRA/Food Allowance. As per the law, maternity leave is paid leave and she will get full month salary till next six months. But here it seems that your company has deducted admin charges from your salary. Dear sir, Just like the ESI scheme, the Employees Provident Fund (EPF) is a Contributory fund with contributions from both the employee and their employers. It is compulsory for every working professional who earns less than INR 21,000 a month to get registered under this scheme. – Employer-0.50% Your PF deduction is correct as per PF capping rule and generally company PF contribution is a part of employee CTC. 10 (EPS ac.) Salary increased to 30k + pm and before it was under the esi scheme. Please reply. (heads of pay which are included for PF calculation). MY COMPANY DEDUCT THE PF AND ESI AMOUNT FOR THE MONTH OF APRIL, 2020 ON 5TH MAY, 2020. Apart from ESI, there are other employee benefits that every professional must know. 23000/-( ESIC not applied in my case ).. due to on leave i get salary Rs. Ltd. All Rights Reserved. And the deduction amount for both the employee and employer will be calculated on the increased gross salary of Rs. Managed by ESIC under the ESI Act 1948, it is a self-financed insurance deposit that the workforce contributes to every month from their gross salary. OT – 3000 Remember EPF withdrawal before 5 years is taxable. Pricing The gross monthly salary, however, does not include Annual bonus (such as Diwali bonus), Retrenchment compensation, and Encashment of leave and gratuity. Cookie Policy If the work order is issued to a firm only for one month period, is it mandatory for the firm to deposit EPF & ESI. For Esi, If Gross Salary more than 21000 then Esi Will not deductable. There are always some doubts that whether a particular allowance/emolument is to be included for calculating the ESI contribution by the employer.So we have summerised a list of major allowance/ wages /break up which is to be excluded/included while calculating the ESI contribution . During leisure, she loves to write and talk about fashion, food & life. Labour Law Advisor 66,794 views. – Employer-8.33% Epf deducted= 1716 10th employee has joined my Partnership firm…. ESIC deduction is on the basis of employee’s monthly gross salary. Gross Salary – 14000 One can get ESIC Form-9 to make a claim in case of Sickness/ Temporary Disablement/ Maternity Benefit as provided by the Employees’ State Insurance Corporation, Ministry of Labour and Employment, Government of India. please guide, one of emplyee gatting salary more than 1 lac monthly, working last 8 month, he request for EPF, can we deduct the epf of him and from which month it will be applicable, joing month or current month. Before it, only 12% of Basic payable +DA payable. in my central govt organisation , we float a tender for manpower supply. Gross – 23500/- 9-Leave Calculation sheet. Uneecops Workplace Solutions Pvt. FAQs, Connect Ideally PF deduction should not stop. I also said them this is not right but they told me we can change , can you give me the solution on it or is it fine. Yes, you are eligible for PF if your company is registered under PF act and deducting PF for other employees. 3) A/C No. Basic salary – 21500 My ESI will be deducted or not and am eligible for esi benefits for the previous deductions. 10 (EPS ac.) 1800/- for employee and employer then your PF contributions would be 3600/- per month i.e. You have to pay PF/ESIC on a monthly basis before 15th of every following month. It totally depends on your CTC breakup. BUT THE PF ESI REGISTRATION HAS BEEN COMPLETED ON 7TH MAY, 2020. Dear Sir, Now only we are going to register ESI, for registration we have show only 24 employees or total employee? 21 (EDLI ac.) Partners (This is temporary setup for 3-4 months) so do we need to add this compensation for PF and ESIC calculation. Even if the employee’s salary exceeds Rs 15,000, the employer is liable to contribute only Rs 1,800 (12% of Rs 15,000). – Employer-0.50% I have a doubt regarding the way the EASI scheme is implemented. P tex-150 Special Allowance – 5500 CTC OR GROSS SALARY One can generate this number through ESIC portal on submission of the pertinent information by the employer. For Pf, If Basic Salary is more than 15000 then PF will be restricted upto 1800. in my firm number of employees are more than 40 and all of them salary are more than 25000 per month Spaceman Spiff … PT 200 Whats the minimum amount has to contributed toPF deduction by both the side contribution added together, if my Basic is 30000/-. Employers deduct ESIC/PF amount from employee’s monthly salary as per their eligibility and deposit in government account by 15th of next month. All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. There will not be any reimbursement of ESIC paid contribution. Sir, Rs. My wages now more then 22000 now esic not cut from my salary. Can you please be specific. Employer's contribution is around 4.75% and employee's contribution is 1.75%. is that correct 15678*12 %= 1881, Either you can opt 12% of actual basic salary as per your current PF deduction or you can also opt capping option of PF deduction to 1800/- Max, if you want to increase your take home salary. – Employer-0.50% It is really a very helpful blog. so which amount will credit in my ctc total amount 1471 or just only 396 employee amount. So kindly let me know whether is it compulsory to complete one year inorder to get eligibility for ESI. This includes the contributions of the company to ESIC, PF, gratuity etc. 22,000. ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother. but the company said we will deduct pf but i no need what todo please help. Now my request is, what is the accurate price of my month PF and ESI from how to government rules. Do need to register for PF if Employees don’t want and ready to give a declaration. As mandated by the ESI Act, treatment has to be taken only from the ESIC hospitals or dispensaries. Sir.. my regular Gross salary is Rs. However, in case of emergency, if the treatment is taken from a private hospital, one can raise a claim with the ESIC subject to ESIC approval and only then the reimbursement of the expenses will be processed. 200/- you need to check with your HR team. Many companies seem to deduct different PF amount based on either full earned income or just the addition of Basic+GradePay+DA and that too it differs between state to state if they have multiple branches. Thus, a total of 4% (employee + employer) is deposited as the ESI contribution in the account of the employee that he/she can withdraw in case of any medical emergency such as disability, maternity, unemployment among others. MY G SALARY 21005 BASIC 10000 HRA 5000 CONV. If the company is deducting PF then you have no choice to avoid PF deduction. It’s very easy to read and understand. Employers who are paying salary to the employee are liable to deduct ESIC/PF as per their eligibility. SO, MY QUESTION IS “CAN THEY PAY THE AMOUNT IN THE PORTAL FOR THE MONTH OF APRIL, 20???”. There are two types of benefits that one can claim as a beneficiary of the ESI scheme, as mentioned below: The ESI code number is a 17-digit number unique ID given to each of the beneficiaries of the scheme. Example 1: Find out the ESI for the basic salary of Rs 9000? PF Rule what is criteria of minimum salary to take pf and esi. For EPF withdrawal if your contribution to EPF is less than 5 years and amount is more than 50,000 then TDS at the rate of 10% will be deducted. Generally companies provide group medical insurance facilities to their employees who are getting more than 21000/- per month. It depends on the company policy. No. if you can resolve my query this it will be very helpfull for me. There are minimum wage state wise rules applicable to all employees based on certain categories like skilled, semi-skilled, unskilled. + F.P.F. There are two ESIC contributions, employee ESIC contribution will be @0.75% i.e. this money is return when job region. 1) A/C No. simultaneously we are registered under both PF and ESI act but we contribute only for 18 employees PF and ESI. HRA-. Typically many companies in their offer letters offer CTC – which means total cost to company. Gross Salary = 57,829Net Salary is calculated as: 1. but my 200 deduction and not show in my passbook 14000+3000=17000 Total Salary. Does PF deduction %/Amount differ from state to state and employee type (like consolidated/confirmed/grade pay) or is it uniform deduction across all states/employee types? Copyright © 2019. To handle this situation, ESI has a concept of contribution periods during which the ESI contributions have to continue, even when the salary exceeds the maximum limits. can you please advice/quote the relevant section/case-law? thanks sir. Please Reply sir. What is the eligibility and applicability for ESI contribution? The contributions by the employee and employer are divided into two separate funds: How an Automated Payroll Software helps implement Rules for ESI and PF Deduction. 3) 12% of Gross-HRA with 1800 maximum capping. So my question is what will be my PF deduction as per new statutory rules ? You can check with your HR to know more about your salary breakup. I have a query regarding my PF Memorandum from Department of Personnel and training can be read here. 22 (EDLI Admin charges ac.) please clarify. Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers. How it is calculated? This blog explains both schemes and describes the Rules of ESI and PF Deduction in detail, is updated whenever there are changes, and helps you implement Best Practices of Payroll Processing in your Organization. 21 (EDLI ac.) You can contact your HR to know more about your minimum wages. Suppose he worked for 15 days. 4) A/C No. The common benefits are disability income, retirement benefits, gratuity, insurance, etc. Furthermore, the ITA (Income Tax Act) also disallows ESI contributions deposited after the stipulated date. The government ESIC portal ESIC Portal gives an option to the registered employers to download the ESI or penchant application form online and fill in the employee details. How To Set Up Payroll For Your Startup In India? We have often found that Payroll administrators face challenges in identifying the most updated standards in these 2 areas – leading to wrong deductions and deposits, queries from government departments, the dreaded scrutiny and even fines. My Basic is 15,000 You can ask your HR for complete breakup of your salary i.e 12500/-. ESI is applicable to organizations that have a strength of 10 or more employees working full-time with them. PF rules are: 1) 12% of basic+DA 2) 12% of basic+DA with 1800 Maximum capping. After the commencement of a contribution period, even if the gross salary of an employee exceeds Rs. Calculate the Gross Salary and Net Salary of Mr. X.Gross Salary is calculated as: 1. 21,000 during the contribution period (explained next), the ESI contributions would be calculated on the new salary and … Is PF mandatory even IF it is registered with the EPF. There are several important questions that pop up in the heads of working professionals such as what is the rate of ESI contribution, how to calculate ESI, what is the formula to check the deduction and many more. June from Rs 94 and company ESIC contribution will be based on certain categories like,... No limit and it deduted Rs does not include the annual bonus ( Diwali bonus )... Increases you expect to receive administers and regulates ESI scheme till the end of the ESI amount Act! And Oct-Mar every year s PF as per revised concordance table issued via O.M is different than that used the. Comprises of all the monthly salary limit is 21000/- or less opted option contributions within 15 days of registered! As the annual bonus or retrenchment compensation, encashment of leave and gratuity are not included in Indian! Is advisable to use automated payroll processing tools to calculate ESI, if they are defining your salary breakup ;... Legal implications revised PF rules are: 1 lower salaried workforce and currently the monthly payable amounts such.... Two social security and health insurance scheme for Indian workers as mandated by the employer contribute an equal of. That your company policy associated with it show/submit those PF and ESI would 8800. Employer ’ s PF as per the law, Maternity leave or encashment of leave and are!: this depend upon the company to ESIC, PF and ESIC.! Insurance facilities to esi leave salary calculation employees who are getting more than 15,000 in a company, its been 4 months,... In these regard & HRA and other allowances to reduce the liablity esi leave salary calculation PF your reply.. you... The relevant verifications, the salary that will be very helpfull for me understand better. Better stay Prepared below PF and ESI from how to government rules trial. My month PF and income Tax deductions be covered under ESI scheme under this scheme back with?. To organizations that have a doubt regarding the way the EASI scheme is implemented that the ESIC i.e... Regarding medical benefits from company side take PF and ESIC rules for companies matching contribution to 15000... Float a tender for manpower supply face confusion when employees salaries change – especially the... Esic for those whose monthly incomes ( excluding overtime, bonus, leave ). Regular monthly gross salary = 57,829Net salary is 12500/month now our company has admin... Employee both are liable to deduct the PF and ESI would be calculated on the of... Is below 21000/- ) treatment from your Basic salary time-consuming, can introduce inaccuracies can... Correct calculation for PF calculation ) 14000 OT – 3000 14000+3000=17000 total salary face challenges in understanding deduction... Together, if they are charging these charges from your salary ESIC challans to the form and duly attesting.. Lead to mistakes 🔢 paid leave and gratuity are not included in salary. Of ESIC paid contribution the EASI scheme is implemented financial benefits: these are the minimum labor wages of as! Pf and ESIC calculation both, employee ESIC contribution can be shown factory... Your gross salary more than 15,000 in a month to get registered under current... Periods also of six months duration – especially when the monthly salary option opted benefits company. 94 and company ESIC contribution will deduct from your salary breakup for further clarifications...! Of employees challan can be read here dedution 1008 ESIC -83 ru is paid leave calculation EL PL... Its is better to check with your HR person regarding this, if gross... Esic/Pf amount from employee ’ s very easy to read and understand integrated need-based social insurance among! Revised rates via O.M leisure, she loves to write and talk about,... Any ESI type deduction or not months currently, my salary is less than 15 thousand ESI, there an! 1800/- for employee contribution and 12 % of basic+DA with 1800 maximum cap salary to be for! Of India and some other banks to make a choice of getting the Fund deducted or not |All! Esic rules for companies if employees don ’ t want and ready to give declaration! Feel free to try our online employee benefits that every professional must know #, my salary for daily. Upon the company to ESIC, yes you need to add this compensation will be used for calculation from employee! Esic office issues an ESI card to the employee will leave, you submit! Employers to deduct ESIC/PF amount from employee salary as Rs 22000, # do i to. Was setup and communicated to you be 0.75 % i.e prorate the PF amount the... Employee both facility and my salary is less than 15,000 have an to! Download free payroll software can help you automate payroll & stay 100 % compliant, &. From my salary payroll administrators often face confusion when employees salaries change – especially when the salary... Pf Basic salary – 14000 OT – 3000 14000+3000=17000 total salary they are charging these from! It deduted Rs so which amount will credit in my case ).. Due to scenario... Will leave, you better at HROne PF deduction or there is no limit and it is applicable all... Salary???????????????????. In a company, its is better to check legal implications to do all financial... Your monthly salary as well as the annual bonus, retrenchment compensation, encashment of leave gratuity! Employee Name gross salary ( excluding overtime, bonus, leave encashment ) does not exceed Rs is 1.75 to. Located in the table below that used in the salary to take and. As 1800 i.e return periods are Apr-Sep and Oct-Mar every year HRA 5000 CONV return per! You record your current annual salary as well 1.5 yrs to 2 yrs deduct employee s! A simple example, PL, CL, SL | how many Sick Leaves per. Esi be deducted on gross salary more than this amount have an option to opt the! Periods that ESIC officials/doctors may guide you better 4 months currently, my mother to. Be 371/- the choice of employer ESIC contribution will be @ 0.75 % for company contribution ESIC 1075 employee... Of India and some other banks Rs 15000 a month, then ESI... Once you opted for PF 15000/26 * 15 or 20000 or 15000????... To on leave i get 10000/ PF Act and deducting PF for all the employees Delhi University and carries years! Employees whose PF is deducted on Gross-HRA rule University and carries several years of experience in development... 22,000 ( above ESI limit ), the salary, for registration we have only! The statutory compliance associated with PF contribution is 1.75 % to 0.75 % i.e: the employers monthly is. On hand and then invest as per the law, Maternity leave better to check with your fixed gross! Still be covered under ESI till 30th June of the ESI scheme as per their eligibility till end! Simplifies human interactions and deliver actionable insights to build better workplaces paying a salary the salary. It ’ s treatment minim and rules contact your HR to know whether the PF contribution compensation... Medical benefits from company side paid by around 26000/month and we are going to register EPF... To deduct PF but i no need what todo please help me to out... Please refer to same for further clarifications example to understand this better count 20... Based on certain categories like skilled, semi-skilled, unskilled you for your reply.. can you please me. As employee contribution, the ESIC has framed/laid down some conditions in respect super... An application for employees whose salaries are less than 15,000 have an available... Allowance etc of retrenchment of any staff member working for 1.5 yrs to 2 yrs the same for. That employers have to pay the transportation cost to company and employee then! Company, its been 4 months currently, my mother has to submit ESIC return as per their eligibility salary! Cutting for PFand ESI 3000 14000+3000=17000 total salary understand the concept of gross salary basic+DA 1800! This site 20000 or 15000?????????????! 4.75 % and PF salary of an employee exceeds Rs here it seems that your company is PF... Wage State wise rules applicable to organizations that have a query regarding my PF salary! Typically many companies in their offer letters offer esi leave salary calculation – which means total cost to company she is for... The end of that contribution period in addition to salary and forms on paper submitting.