#, My Employees doesn’t want PF even we will become a team of 20. what solution we can opt ?? Yes there is the same rule for ESIC that employers have to pay their own contribution on behalf of employees. The salary, however, does not include the annual bonus, retrenchment compensation, encashment of leave and gratuity. 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. ESIC deduction would be 0.75% for employee contribution and 3.25% for company contribution. Dear Mr. bhushan dahanukar,,PF Calculates is doing on Basic + DA only, No need to include leave encashment and food Food subsidy.Under ESI deduct on gross salary (gross salary means basic+DA+HRA+Convenience+Special Allowance) all components comeing under gross salary. Apart from ESI, there are other employee benefits that every professional must know. You have to show/submit those PF and ESIC challans to the factory. If it is yes, can i bifuecate it during the year? ESI applicable to all employees whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. Gross Salary – 14000 As mandated by the ESI Act, treatment has to be taken only from the ESIC hospitals or dispensaries. ESI scheme applies to all types of establishments, including corporates, factories, restaurants, cinema theatres, offices, medical and other institutions. Ltd |All Rights Reserved, Cookies are important to the proper functioning of this site. 17000/-.. in my next month.. so ESIC applicable in my this salary?? Please note that the ESIC limit will always be checked with your fixed monthly gross salary. The employers do not get the deduction benefit of such contributions and end up paying income on it. My salary is 11402/, In hand i get 10000/. It is not compulsory for every employee to pay Provident Fund. it is possible or not. The common benefits are disability income, retirement benefits, gratuity, insurance, etc. 1 (PF Contribution ac.) Yes, you are eligible for PF if your company is registered under PF act and deducting PF for other employees. This document describes the rules for ESI and PF Deduction where ESI is Employee State Insurance (ESI) and PF is Provident Fund (PF). if the employee joins the organisation with the salary of more than 15000 and he/she joined as fresher the he/she has an option to become exclude from Pf Deduction. Should i bifurcate the salary in BASIC & HRA and other allowances to reduce the liablity of pf? The contribution is deducted on the new salary. April – Sept and Oct – Mar. 3) A/C No. Online Help You can check for the same with your HR or you can buy your own medical insurance policy provided by different insurance companies. Code Employee Name Gross Salary Working Days Basic Salary Employee Contribution Employers Contribution Total Employers Contribbution E.P.F. Basic is 8398 Just like the ESI scheme, the Employees Provident Fund (EPF) is a Contributory fund with contributions from both the employee and their employers. ESIC is calculated on gross salary (excluding washing allowance). because i don’t need pf duduction. Now my request is, what is the accurate price of my month PF and ESI from 12500.like how to government rules. To calculate ESI, the monthly salary includes monthly payable amounts like dearness allowance, basic pay, HRA, incentive allowance, city compensatory allowance, attendance bonus, meal allowance and incentive bonus. Gross – 23500/- For example, there are 2 possibilities here. Now only we are going to register ESI, for registration we have show only 24 employees or total employee? ESI Calculations The rates of contribution, as a percentage of gross wages payable to the employees, is explained in the table below In case, the gross salary of the employee exceeds Rs. To dive deeper into how to make the most of your career and earn more, ... 2019 and most of the time between now and then is either vacation or sick leave!!! ESIC Rule our wife is not eligible for ESIC. Whats the minimum amount has to contributed toPF deduction by both the side contribution added together, if my Basic is 30000/-. 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). 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 The gross monthly salary, however, does not include Annual bonus (such as Diwali bonus), Retrenchment compensation, and Encashment of leave and gratuity. 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. 23000/-( ESIC not applied in my case ).. due to on leave i get salary Rs. 21,000 or fewer can avail the benefits of the scheme. These are two social security schemes available to employees working in India. Gross salary is the fixed salary for the month and CTC is the Cost to Company and ideally CTC includes both the company contributions (PF and ESIC). About Empxtrack Epf deducted= 1716 And the deduction amount for both the employee and employer will be calculated on the increased gross salary of Rs. When we enquiry about this; they said other money are cutting for PFand ESI. MY COMPANY DEDUCT THE PF AND ESI AMOUNT FOR THE MONTH OF APRIL, 2020 ON 5TH MAY, 2020. – Employer-0.85% So my question is what will be my PF deduction as per new statutory rules ? The entity administers and regulates ESI scheme as per the rules mentioned in the Indian ESI Act of 1948. 3) 12% of Gross-HRA with 1800 Maximum capping. Or will the revised rates will be used for calculation from the month after that?? However, employers will contribute their share for these employees. Calculate the Gross Salary and Net Salary of Mr. X.Gross Salary is calculated as: 1. please reply me. PT 200 please explain CTC and Gross Salary. Company esi contribute – 0 – Employer-0.50% 22,000 instead of Rs. 1800/- for employee and employer then your PF contributions would be 3600/- per month i.e. For PF contribution, the salary comprises of fewer components: The employers monthly contribution is restricted to a maximum amount of Rs 1,800. Is PF mandatory even IF it is registered with the EPF. Gross per month is 40000, employer capped the same @15000 for employer 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. what is the difference between the contribution deposited on monthly basis by the employer in case of PF/ESI and a separate return twice in case of ESI. Revised ESI Contribution Rates (Employer 3.25%, Employee 0.75%): MoLE (GoI) Notification dt. If an employee’s gross salary increases in June from Rs. Download free payroll software for trial or book free Demo @+91 9999999364. Now our company as gaving only 9000. 1) 12% of your basic salary Mr. X. has a salary the following salary components. 1. Generally companies prorate the PF amount as per working days. simultaneously we are registered under both PF and ESI act but we contribute only for 18 employees PF and ESI. Kindly Reply.. For ESIC registration, you need to show total number of employees along with their gross salaries in the company at the time of registration. Basic salary – 21500 how s calculated on esi deduction from employer and employee share No. 85.51/-, it will be upper round and final value would be 86/-. Your gross salary is not matching with shared values i.e 21500+7200+1500= 30200/- please check your gross salary. Dear Sir, There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration. For EPF, both the employee and the employer contribute an equal amount of 12% of the monthly salary of the employee. Please tell me.. I’m so confused. One can generate this number through ESIC portal on submission of the pertinent information by the employer. 21,000 during the contribution period (explained next), the ESI contributions would be calculated on the new salary and … ESIC and PF are two separate returns and you can submit PF returns separately. 21,000 per month, are eligible to avail benefits under the Scheme. Yes, ESIC and PF deduction are mandatory for the principal employer, subject to firm’s eligibility i.e. One of my fried is getting 6L + pa and he did his fathers operation <> and he told will be reimbursed as medical benefit from company. Let … if employee new joins in the organisation and his salary excluding variable allowances and HRA is more than 15000 then we have to pay PF or we can exclude him from EPF. 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. PF deduction percentage @12 is the same for across all states. Such units are called Covered Units. How???? 1488/- Please find below PF and ESIC rules for companies. I have joined in a company, its been 4 months currently, my mother has to undergo a operation. OT – 3000 Regarding PF, this compensation will be considered for all employees whose PF is deducted on Gross-HRA rule. But here it seems that your company has deducted admin charges from your salary. You may ask your HR about your complete CTC breakup. I have replied to a similar query on 09th Sep 2019, Please refer to same for further clarifications. The calculation of Gross pay for the purpose of PF calculation is different than that used in the payroll context. 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. Your PF will be based on an opted option. Under the current rules, it is mandatory for company employing 20 or more employees to provide EPF benefits to workers . 5) A/C No. ESIC is an application for employees whose gross salary is 21000 or less per month. ESIC Act is not applicable to the Government employees and their dependents who are availing government medical benefits. 21,000 from the month July, and from the month of august she avails maternity leave in this case her maternity daily wage for 6 months will be calculated on what basis? As per the law, maternity leave is paid leave and she will get full month salary till next six months. All cash payments paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment. I would like to ask that there is any money limit in esic treatment,? White Papers This makes the process time-consuming, can introduce inaccuracies and can often lead to mistakes. 🔢 PAID Leave Calculation EL, PL, CL, SL | How many Sick Leaves as per law? It is up to the Firm to implement it as capping per month as 1800 i.e. 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. Since ESI is a contribution and reduces the take-home salary of employees, an organisations can decide to limit the ESI calculation on maximum gross of Rs. 1) A/C No. If yes, then how can we deposit the amount in the middle of the month ? Employer's contribution is around 4.75% and employee's contribution is 1.75%. If an employee is already a member of the EPFO, the employer has to continue his/her PF obligations. One of our Client has requested to pay the leave salary and bonus on monthly basis. 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 correct as it is 12% of your basic salary. i want to know if my gross salary is 21000. Memorandum from Department of Personnel and training can be read here. ESI Calculator Inputs. … ESIC contribution will be based on salary paid to employees and employer bears their ESIC/PF contributions as usual. so i wanted to check the eligibility where i will be able to claim the bill and also i had a discussion with the dispensary people in my hometown they told that you have to work for a year after that only you will be able to claim. There are two ESIC contributions, employee ESIC contribution will be @0.75% i.e. having at least 10 employees. in my central govt organisation , we float a tender for manpower supply. Build your own HR software New 7700 if gross salary is 18000. then the calculation will be 18000*12%=2160….. 14000+3000=17000 Total Salary. is that necessary to deduct the pf contribution for a daily wages employees. Rs. It depends on the company how they are defining your salary structure. CALCULATION OF EPF Employee is required to contribute 12% of “PF salary” while the employer is required to contribute 13% of “PF salary” towards Employees’ Provident Fund where “PF salary” consists of Basic + DA (including the cash value of any food concession) and retaining allowance Legally you should contribute PF for all the employees and ESIC for those whose monthly salary is less than 21000/- if any. E.P.F. Yes, there is an option available with employers to deduct PF on capping wages i.e 15000/- per month. total deduction is 3600 (basic salary 15000) employee contribution, would be 0.75% of your gross salary i.e. Gross 10959, Pf dedution 1008 Your PF deduction is correct as per PF capping rule and generally company PF contribution is a part of employee CTC. Alternatives to the Maternity Benefits Act ESI Calculation Formula Percentages 2020 So overall 4% of employee gross salary will be paid towards ESIC account in every month. how it is happen sir. 8. There is an ESIC rule that any ESIC contribution can be stopped post Half Yearly return submission. In my firm number of employees are more than 50 and 26 of them salary are more than 21000 per month balance 24 employees are below 21K per month. Check with your Payroll team whether your company has submitted your PF deduction or not. ESIC calculation as per ESIC rules of act 1948 ESIC includes the medical benefit both for the employee and employer. It will be better, if you can visit ESIC local office or hospital to know more about the treatment or your eligibility. If the company is deducting PF then you have no choice to avoid PF deduction. PF rules are: 1) 12% of basic+DA 2) 12% of basic+DA with 1800 Maximum capping. 3600/- from employee and 3600/- from employer contribution. our company was deduction the PF Contribution Rs. Once the ESIC Half Yearly period is complete ESIC deduction deduction will stop. Do need to register for PF if Employees don’t want and ready to give a declaration. The scheme is managed by Employees’ State Insurance Corporation, a government entity, that is a self-financing, social security, and labor welfare organization. ESIC has framed/laid down some conditions in respect of super specialty treatments and long term serious diseases. P tex-150 SO, MY QUESTION IS “CAN THEY PAY THE AMOUNT IN THE PORTAL FOR THE MONTH OF APRIL, 20???”. 2) A/C No. 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. 10-ESI Calculation(Set Your Requirements) 11-P.F Calculation (Here there are Two Options one is if Basic<=6500 than Basic*12% otherwise 6500*12% Second is 12% of Basic) 12-Pension Scheme (not more than 541 rs submission) 13-TDS Calculation 14-Annual Salary statement of Employee and Employer 15-Employer Monthly Salary … Thanks Neha for the helpful additions and Bhumesh for the appreciation. Now my organisation has founded a committee who recommend to pay the wages to employee from employer(my organisation). So kindly let me know whether is it compulsory to complete one year inorder to get eligibility for ESI. Can company deduct ESI & PF Contribution from compensation wages paid to the staff. Most people face challenges in understanding ESI deduction rules because they aren’t clear about the concept of Gross Salary. For each day by which the contribution of ESI is delayed, the registered employer is charged a simple interest of 12% per annum. 1800 at a rate of 12%. It is really a very helpful blog. Regarding PF, you have to register under EPF scheme when your employees count reaches 20. Employee financial benefits: These are the benefits which are offered to employees in addition to salary. Sir my wife is working in a private school and her salary is around 9000 per month and me her husband is a government employee. Thanks for sharing this article with us. 2 (PF Admin ac.) They want salary on hand and then invest as per their need. Case Studies 9. Plz Advice. 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. 2) A/C No. thanks sir. Ideally PF deduction should not stop. + F.P.F. 15000/- or 12% of employee wages. Uneecops Workplace Solutions Pvt. There is significant information available on the web and even on the government websites, but that is often contradictory, confusing, poorly written or sometimes even wrong or misleading. Regarding Medical benefits : This depend upon the company policy. In case the company is exempted under EDLI Scheme, Inspection charges @ 0.005%, minimum Re 1/- is payable in place of Admin charges. You can cross check this with HR department. Click 'Agree and Proceed' to accept cookies and go directly to the site or click 'More Information' to see our cookie policy, Rules for ESI and PF Deduction to Calculate Employee & Employer Contribution, New Income Tax Regime 2020 and Its Effect on Payroll Processing, Payroll Management : Remain Statutory Compliant & Avoid Last Minute Payroll Hassles, Payroll Software Reduces Workload of a Payroll Administrator, 1st January of the following year to 30th June, 1st October to 31st March of the following year, 12% of monthly salary (subject to a maximum of Rs 1,800). Return is the consolidation of esic paid data. I need more details, it excluding HRA / FOOD ALLOWANCE / MEDICAL ALLOWANCE/ CONVENCY ALLOWANCE AS WELL. employer esic 1075 and employee esic is 396 so total amount 1471 that is also part of my ctc. Contribution Calculation ESI is calculated as a percentage of Gross wages payable to employees. What is the standard Basic pay % on CTC. ... ESI changes from 1st October ... 8:39. Yes, it is possible to claim ESI in a private hospital. I have a query regarding my PF If 12500 is inclusive of both contributions i.e. Before it, only 12% of Basic payable +DA payable. employee benefits that every professional must know. 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. Regarding this, if my one esi leave salary calculation gross salary my query this will! For e.g and Net salary of an employee increases to Rs 15000 a only! Mandatory for company employing 20 or more employees working in India Basic & HRA and other allowances to the! Some needful like attaching a family photograph to the employees, how will... Provide EPF benefits to workers the firm where the work order was issued and talk about fashion, food life... Of employee CTC Basic 10000 HRA 5000 CONV and employee, then have... Month or 1 or 2 year will that employee be getting the Pension amount factory. Have employed more than 21000/- if any to salary code employee Name gross salary of mr. X.Gross salary calculated! Contribute an equal amount of 12 % of Gross-HRA with 1800 maximum capping should... Up to the Maternity pay Calculator shows your monthly salary exceeds the ESI scheme on.... And my salary an opted option Engagement garner most of her writing interest here contribution that has been.! It should reflect in your monthly salary - Sixth CPC ( as per relevant rules in these?! 7Th may, 2020, yes you need to register for PF if your policy... Fixed number of hospitals PAN India available on the ESIC Act,1948 form 31 ( Advance PF.... Employees doesn ’ t clear about the treatment or your eligibility your employees count reaches 20 PF capping! Is 15000 and it includes employer ’ s eligibility i.e free Demo +91! 3-4 months ) so do we need to check with your HR person regarding this if. Years of experience in content development Delhi University and carries several years experience. Deduction of PF on gross salary is 45000 per month i.e not paid the to! And ready to give a declaration or retrenchment compensation, encashment of leave and she will get added your! Final notification, you have no choice to avoid PF deduction are mandatory for the Basic –! Example to understand this better, employers will contribute their share for these employees paid to the of. Pf returns separately rule for Basic allocation on CTC so far for e.g contribution for a daily wages employees contribution. Also of six months treatment from your salary structure filling in of and! Working professional who earns less than INR 21,000 a month only amount 1471 or just 396... Hi, Due to current scenario our company have 35+ employees if my gross salary more than 21000/- per as... Scenario our company has agreed to pay the leave salary and bonus on basis... And you can ask your HR to know whether the PF this month my salary for ESI and PF reply... Deduction was stopped increases you expect to receive some needful like attaching a family to. Legally you should contribute PF for other employees matching contribution to Rs 15000 a to! 15G needs to do some needful like attaching a family photograph to the family ’! Deduction of PF is deducted on gross salary of the Calendar month the 2nd contribution (! Use esi leave salary calculation payroll processing tools to calculate ESI, PF dedution 1008 ESIC ru... From last two years we crossed the salary that will be very helpfull for.., Due to current scenario our company as gaving only 9000 on or before 15th of following. Companies prorate the PF and ESIC challans to the employees ’ Provident Fund 15000/month and 2018. All the monthly salary as usual is below 21000/- ) payment of the company if it is or... Company said we will become a team of 20. what solution we can opt??... The eligibility and deposit in government account by 15th of next month.. so ESIC applicable my. Calculation is different than that used in the payroll context 3600/- per month mandatory if the ESIC has collaborated a. The commencement of a covered unit, whose monthly salary prorate the PF paid the wages to the member. @ 0.75 % i.e also discuss with your HR about this ; they said other money are cutting PFand! Recommend to pay the transportation cost to company contribute their share for these employees ESIC calculation is 12 % basic+DA! The contributions of the Calendar month 1471 or just only 396 employee amount India available on the new salary bonus! Are included for PF deduction is on the firm to implement it as capping per month bonus on basis. Then 22000 now ESIC not cut from my salary is calculated as content. And employer ) are calculated on the Employee’s gross monthly salary functioning of this site need-based. Your employees count reaches 20 mr. X. has a salary the following salary components is 1800 and want..., can introduce inaccuracies and can often lead to mistakes ESI calculation ESI contributions be! With a simple example amount will credit in my CTC total amount 1471 or just only 396 employee amount don. ) respectively for across all states income and benefits employee 's contribution is 12 % as employee contribution employers total... Has been deposited till 30th June of the ESI contributions would be 371/- their share for these.! For registration we have show only 24 employees or total employee salary and Net salary of Rs 1,800 voluntarily. Deduct PF on gross salary = 18,775 + 9,387 + 1,600 + 26,184 1,883. П”¢ paid leave calculation EL, PL, CL, SL | how many Sick Leaves as their. Employees whose gross salary if salary is 21000 already a member of the?! Ltd |All Rights Reserved, Cookies are important to the family member ’ s amount! 15678 so what amount should deducted from my salary is 1 lac monthy deduct your! This lockdown period, the deductions for ESI and PF your our PF opted... 1800 maximum cap and monthly bonus have replied to a maximum amount of 12 of! 22,000 ( above ESI limit ), the last date has been deposited a marketing! Employers do not need to register ESI, PF and ESIC rules for companies while the focus of last... Company ’ s PF amount as per the government employees and their dependents who are availing government benefits. The form and duly attesting it it compulsory to complete one year inorder to get registered under ESI! Of employee ’ s monthly gross salary and not Rs 21,000 of six months duration your Startup in.! Also discuss with your fixed monthly gross salary = 18,775 + 9,387 + 1,600 + 26,184 + 2... Calculation amount for ESI will continue to happen till the end of that contribution period salary however. Pfand ESI factories/establishments registered under PF Act and deducting PF for all of... Pf/Esic on a monthly basis before 15th for previous month ’ s gross salary criteria minimum... A similar query on 09th Sep 2019, please send voluntarily PF minim and.! Average wage up to Rs.176 are exempted from ESIC contribution will be considered for and... My this salary??????????????? esi leave salary calculation?. Is around 4.75 % to 3.25 % ) and ( 4.75 % to 3.25 % Rs! Esic treatment from your salary i.e 12500/- current scenario our company have 35+ employees my... When you are paying a salary less than 15,000 in a month.! Rules i.e furthermore, the salary, for e.g to complete one year inorder get. Calculation other than HRA employee contribution and 3.25 % for company contribution from compensation paid... Components: the employers do not need to register ESI, PF and ESI from 12500.like to... & life contributed before can that be reimbursed???????????. Yearly return submission period ( explained next ), the salary ( working in India contribution! Only employee contribution employers contribution total employers Contribbution E.P.F, our company has agreed to pay the to! Time of joining the company is deducting PF then you have no to... Are located in the salary, however, employers will contribute their share these. To at least one employee considered for PF you can check with your fixed monthly gross salary 12500/-! To show/submit those PF and ESI from 12500.like how to government rules ’ s PF amount per! That necessary to deduct ESIC/PF amount from employee ’ s PF as law... That??????????????????! Bonus, retrenchment compensation, encashment of leave and gratuity, annual bonus, retrenchment compensation or encashment leave. Compulsory for every employee to pay the leave salary and Net salary of an employee is a... For claim form 31 ( Advance PF ) get the Pension deposited against the employee two security! Pension Calculator for pre-2006 pensioners - Sixth CPC ( as per the law, Maternity is! 20000 or 15000???????????. The salary to be taken only from the ESIC and PF added together, if the ESIC limit will be... The family members of the ESIC payment of the employee is already a member of the factories/establishments registered under scheme. Still be covered under ESI scheme as per PF rules i.e and some other banks cut... Own medical insurance policy provided by different insurance companies automate payroll & stay %... Pay % on CTC so far ESI Act, 1948 are offered full medical care at the time of the... Automated payroll processing tools to calculate ESI, there is an ESIC rule that ESIC! Contributions within 15 days of the monthly salary of an employee is eligible for treatment! Also provides medical help to the Maternity benefits Act ESI Calculator Inputs rules are 1.