Hi,
I have seen one of your comment related to salary breakup..which you have explained through 1 example and in that you have showned the formula for calculating monthly ESIC is 1.75% of Basic. But actually we are using this formula-- i.e., ESIC= 1.75%of total earnings. here i got confused. Please explain.
From India, Mumbai
1I have seen one of your comment related to salary breakup..which you have explained through 1 example and in that you have showned the formula for calculating monthly ESIC is 1.75% of Basic. But actually we are using this formula-- i.e., ESIC= 1.75%of total earnings. here i got confused. Please explain.
From India, Mumbai
Dear Prajakta
For the purpose of calculating ESIC contribution 1.75% of total earning not basic, if an employee is getting Rs. 12,000/-.
e.g. monthly salary of an employee is :-
Basic : 7000.00
HRA : 2500.00
Conv. : 1000.00
Mis. All: 500.00
CCA : 500.00
Spe. A: 500.00
then we have to calculate the ESIC contirbution of the above on all the heads mention above, we will treat the salary for the purpose of ESI contribution Rs. 12000/- not basic. The contribution will be Rs. 12000*1.75%=210.00 (employee Share of contribution) and Rs. 12000*4.75%=570.00.
From India, Gurgaon
For the purpose of calculating ESIC contribution 1.75% of total earning not basic, if an employee is getting Rs. 12,000/-.
e.g. monthly salary of an employee is :-
Basic : 7000.00
HRA : 2500.00
Conv. : 1000.00
Mis. All: 500.00
CCA : 500.00
Spe. A: 500.00
then we have to calculate the ESIC contirbution of the above on all the heads mention above, we will treat the salary for the purpose of ESI contribution Rs. 12000/- not basic. The contribution will be Rs. 12000*1.75%=210.00 (employee Share of contribution) and Rs. 12000*4.75%=570.00.
From India, Gurgaon
Thanks Mr. Mukesh...
I partially understood what exactly you have explained. As you know ESIC will be applicable to those employees whose total earning is upto Rs. 15,000/- Prior the limit was Rs. 10,000/-. Please tell me When shall we use the method of calculating ESIC on Basic???
Prajakta S. More
From India, Mumbai
I partially understood what exactly you have explained. As you know ESIC will be applicable to those employees whose total earning is upto Rs. 15,000/- Prior the limit was Rs. 10,000/-. Please tell me When shall we use the method of calculating ESIC on Basic???
Prajakta S. More
From India, Mumbai
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