HI All,
I want to know about the basic of PF & ESIC. I am new to these terminology in practical. Please can anyone explain me this and also let me know how to calculate PF & ESIC.
Thanks in advance to all.
From India, Pune
1I want to know about the basic of PF & ESIC. I am new to these terminology in practical. Please can anyone explain me this and also let me know how to calculate PF & ESIC.
Thanks in advance to all.
From India, Pune
Dear member,
1. ESI & EPF are such schemes which cannot be explained in few lines. It will be more better if you may download the material including Acts and rules/regulations framed thereunder from the websites either of above departments or from Ministry of Labour & Employment, Central Govt.
2. You can, however, raise any specific issue on any labour laws after going through the basic instructions, and provisions of said Acts/rules/regulations, if there remains scope of any doubt.
From India, Noida
1. ESI & EPF are such schemes which cannot be explained in few lines. It will be more better if you may download the material including Acts and rules/regulations framed thereunder from the websites either of above departments or from Ministry of Labour & Employment, Central Govt.
2. You can, however, raise any specific issue on any labour laws after going through the basic instructions, and provisions of said Acts/rules/regulations, if there remains scope of any doubt.
From India, Noida
Hi,
PF calculation
Basic salary of Rs 3500
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500.
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
Basic salary above Rs 6500
In such cases companies uses different method for calculation as per their pay roll policy. Consider an employee getting a basic salary of 7500/- We can calculate it in different ways but EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs 541.00. The three methods mentioned below are based on the above example.
Method-1
If company consider total basic salary above the limit fixed 6500.00 for PF calculation. Employer has decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00. EPS Share is fixed to 541. Balance (900-541) goes to EPF account 359.00. You may be thinking that, what about 3.67%?, Here you don’t need to care about it.
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 7500 x 12% (-) 541 359
EDLI charges 7500 x 0.5% 38
EPF Admin charges 7500 x 1.1% 83
EDLI Admin charges 7500 x 0.01% 0.75 ( Round up to Rs 1/-)
Method -2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Method-3
Some companies calculate both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards Calculation Amount
EPF Employees share 6500 x 12% 780
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Esi Calculation
Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. Any labour who earns below Rs 15000 as his or her monthly salary will be covered under the ESI. Both the employer and employee donate for ESI. Employer's contribution is around 4.75% and employee's contribution is 1.75%.
Example 1:
Find out the ESI for the Gross salary of Rs 9000?
Step 1:
Enter the salary, For e.g. 9000
Step 2:
Employee contributes 1.75% for ESI. Now compute as shown here, ESI = 9000*(1.75/100) = 158
Step 3:
Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9000*(4.75/100) = 428
From India, Mumbai
PF calculation
Basic salary of Rs 3500
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500.
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
Basic salary above Rs 6500
In such cases companies uses different method for calculation as per their pay roll policy. Consider an employee getting a basic salary of 7500/- We can calculate it in different ways but EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs 541.00. The three methods mentioned below are based on the above example.
Method-1
If company consider total basic salary above the limit fixed 6500.00 for PF calculation. Employer has decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00. EPS Share is fixed to 541. Balance (900-541) goes to EPF account 359.00. You may be thinking that, what about 3.67%?, Here you don’t need to care about it.
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 7500 x 12% (-) 541 359
EDLI charges 7500 x 0.5% 38
EPF Admin charges 7500 x 1.1% 83
EDLI Admin charges 7500 x 0.01% 0.75 ( Round up to Rs 1/-)
Method -2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Method-3
Some companies calculate both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards Calculation Amount
EPF Employees share 6500 x 12% 780
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Esi Calculation
Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. Any labour who earns below Rs 15000 as his or her monthly salary will be covered under the ESI. Both the employer and employee donate for ESI. Employer's contribution is around 4.75% and employee's contribution is 1.75%.
Example 1:
Find out the ESI for the Gross salary of Rs 9000?
Step 1:
Enter the salary, For e.g. 9000
Step 2:
Employee contributes 1.75% for ESI. Now compute as shown here, ESI = 9000*(1.75/100) = 158
Step 3:
Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9000*(4.75/100) = 428
From India, Mumbai
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PF ESIC.xls