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Calculation of ESI & PF

Dear Sir

(Accounts)
This query is : Resolved

I want to know Calculation and Accounting Entries of PF and ESI Please tell me with illustration. Author : Anonymous
( Author ) 06 November 2009

Thanking You:-

PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- or less above that PF is not deducted. 1) Employee 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) 2) Employer 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any) [ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + Ram Avtar Singh 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
( Expert ) 07 November 2009

EDLI - Employee deposit link insurance EPF: Here this PF is normally deducted from the basic & DA ( dearness allowance ) Such that Basic salary - 35% DA - 15% outof gross salary. For (e.g) - If the gross salary of a person is Rs.9000/-p.m Basic- 35% @ 9000 - 3150 DA - 15% @ 9000 - 1350 Total ------4500 -------Such that the total amount would be deducted @ 12% (i.e) PF - 540/The maximum ceiling limit of PF - Rs.6500/If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies. Provident fund is calculated towards the employers is 13.61% 1. Employers Contribution 2.EPF A/c No.1 - 3.67% 3.EPF - Admn Charges - 1.1% 4.Pension Fund A/c No.10 - 8.33% 5.EDLI A/c No.21 - 0.5% 6.EDLI - Admn Charges - 0.01% ESIC calculation: ------------------In this ESIC, it includes the medical benefit both for the employee and employer. It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.10000/- p.m Employee side - 1.75% and Employer side - 4.75%. So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% =

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18/07/2012 18:50

Calculation of ESI & PF - Accounts Experts - Chartered Accountants Indi...

http://www.caclubindia.com/experts/calculation-of-esi-pf-271885.asp

140/Employer 8000*4.75% = 380/Therefore Net pay = Gross pay - Total deductions 1. Those who are getting 10000/- gross per month will not be applicable under ESIC act. 2. 20 eligible employees to get registered in ESIC 3. Eligible employees means those who are getting gross pay upto 10000/- or less per month. Apart from that there is a tax deduction., it includes the Income & professional tax. CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly) gross pay + employers pf+employers ESI + bonus = CTC i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY. CTC ----CTC is cost to company and the components are Basic +HRA +CONVEYANCE +MOBILE REIMBURSHMENT +MEDICAL reimburshment +All allowances +LTA +employer cotri of PF +Employer Cotri towards ESI +Total variable incentives +Perks & benefits + insurance Premium (in case of Group insurance) Gratuity calculation t is been deposited @ 4.81% of Basic per month.. After completing 5 years of service one may claim Gratuity at the time of separation from the organisation and it is been paid @ 15 days of salary for per year of service... Like for 6 years of experience one's gratuity will be calculated with this formula-

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18/07/2012 18:50