Dear All Please let me know that what are the deductions being made form the salary of an employee for ESI, and to what %, that too out of what is it Basic or CTC???
From India, New Delhi
From India, New Delhi
Towards ESI the only deduction from the salary is 1.75% of the gross salary paid or payable to an employee. Only employees whose gross salary does not exceed Rs 15000 are covered by ESI and therefore, the above mentioned deduction is to be made from those employees who get salary of less than Rs 15001. For the purpose of coverage gross salary is taken into account. Any amount paid in an interval of more than two months is not taken into account. Therefore, any sum which is paid as part of CTC in an interval of less than two months excluding contribution paid towards employer's contribution to Provident Fund will attract ESI. The employer's share of contribution towards ESI is 4.75% and the amount should never be recovered from the employee.
Regards,
Madhu.T.K
From India, Kannur
4250Regards,
Madhu.T.K
From India, Kannur
Dear Madhu.T.K
__________________
Myself Ram, thx for the knowlede about ESI, one thing i want to ask you that after deduction whats the next step like where to submit, whats the due date, which form we have to fill, etc. and what the procedure to apply for ESI and we are applying for ESI for what purpose. I mean i want totaly information regarding ESI.
regards,
ram
From India, Ahmadabad
__________________
Myself Ram, thx for the knowlede about ESI, one thing i want to ask you that after deduction whats the next step like where to submit, whats the due date, which form we have to fill, etc. and what the procedure to apply for ESI and we are applying for ESI for what purpose. I mean i want totaly information regarding ESI.
regards,
ram
From India, Ahmadabad
Dear Ram,
ESI stands for Employees State Insurance and is a social security arrangement whereby the employees and their family members get medical benefits, disablement benefits etc free of charge from ESI dispensaries/ hospitals and such other private hospitals as notified. The medical benefits includes super specialty treatments also.
For details regarding ESI please visit the official website of ESI Corporation. For a brief idea about the returns and procedures have a look at the PPt available in my blog.
Regards,
Madhu.T.K
From India, Kannur
ESI stands for Employees State Insurance and is a social security arrangement whereby the employees and their family members get medical benefits, disablement benefits etc free of charge from ESI dispensaries/ hospitals and such other private hospitals as notified. The medical benefits includes super specialty treatments also.
For details regarding ESI please visit the official website of ESI Corporation. For a brief idea about the returns and procedures have a look at the PPt available in my blog.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu T.K. If i am not wrong also washing allowance is not attracted towards deduction of contribution under ESI. Regards, KIRAN KALE
From India, Kolhapur
From India, Kolhapur
It is calculated on monthly salary Like Basic, ADA, Overtime, HRA and Conveyance Allowances. We should deduct 1.75% from Employee and contribute 4.75% from Employer.
Please also note that we have to pay before 20th of next month.
We have to file returns once in sixth month.
From United Kingdom, Oxford
Please also note that we have to pay before 20th of next month.
We have to file returns once in sixth month.
From United Kingdom, Oxford
Dear Friends,
Mr.Madhu & Mr.Kiran are correct.
First we should know what are the components will be exempted from ESI :-
1) Washing Allowance (Maximum amount you can put
2) Conveyance Allowance reimbursed to employees (amount should vary from person to person - if paid monthly also no problem - it should not be included in the total Gross Salary) (For this, you can have a separate statement prepared viz., Conveyance Reimbursement.
3)Also you may note that Shift allowance attract ESI, hence you may account it as Night Shift Conveyance Reimbursement, so that you can unnecessary deduction of 4.75% ESI, and thus you save some amount to your employer.
4) Any incentive amount (i.e., Attendance Bonus/Incentive) paid in an interval of more than two months is not taken into account. Please pay it quarterly, so that you can avoid ESI.
Secondly, we should also know what are the components will be exempted from PF :-
Now in Chennai - Ambattur EPF Office - EOs are insisting us to have Basic Pay upto 60% on Gross Salary.
The following are exempted :-
1) House Rent Allowance - Please have it upto 35% on the total Gross Salary
2) Overtime Allowance - Just to show it to EPF authorities - please have it upto 25% on the total Gross Salary (but this salary statement should not be shown to IF authorities). They will ask various questions - whether it is double wage or single wage - what is the OT hours, etc. etc.
All other components whatever name you call it, it will attract EPF upto a sum of Rs.6,500/- the maximum limit prescribed by EPF authorities.
I hope that I clarified some important points, if anyone differs from the above, write to me in my mail ID :
Thanks
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
Mr.Madhu & Mr.Kiran are correct.
First we should know what are the components will be exempted from ESI :-
1) Washing Allowance (Maximum amount you can put
2) Conveyance Allowance reimbursed to employees (amount should vary from person to person - if paid monthly also no problem - it should not be included in the total Gross Salary) (For this, you can have a separate statement prepared viz., Conveyance Reimbursement.
3)Also you may note that Shift allowance attract ESI, hence you may account it as Night Shift Conveyance Reimbursement, so that you can unnecessary deduction of 4.75% ESI, and thus you save some amount to your employer.
4) Any incentive amount (i.e., Attendance Bonus/Incentive) paid in an interval of more than two months is not taken into account. Please pay it quarterly, so that you can avoid ESI.
Secondly, we should also know what are the components will be exempted from PF :-
Now in Chennai - Ambattur EPF Office - EOs are insisting us to have Basic Pay upto 60% on Gross Salary.
The following are exempted :-
1) House Rent Allowance - Please have it upto 35% on the total Gross Salary
2) Overtime Allowance - Just to show it to EPF authorities - please have it upto 25% on the total Gross Salary (but this salary statement should not be shown to IF authorities). They will ask various questions - whether it is double wage or single wage - what is the OT hours, etc. etc.
All other components whatever name you call it, it will attract EPF upto a sum of Rs.6,500/- the maximum limit prescribed by EPF authorities.
I hope that I clarified some important points, if anyone differs from the above, write to me in my mail ID :
Thanks
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
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Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc