dear seniors n friends,
i would like to know if employees' and employers' contribution towards esic and pf be based on basic pay alone or basic with DA and HRA?
is pf and esic contribution also applicable to white collar jobs/ service industry?
tnx and regards
kane
From United States, Cambridge
i would like to know if employees' and employers' contribution towards esic and pf be based on basic pay alone or basic with DA and HRA?
is pf and esic contribution also applicable to white collar jobs/ service industry?
tnx and regards
kane
From United States, Cambridge
Dear Kane !!
ESIC CONTRIBUTION :
EMPLOYER - 4.75 % OF THE GROSS SALARY
EMPLOYEE - 1.75 % OF THE GROSS SALARY
PF CONTRIBUTION:
EMPLOYER - 12% OF THE BASIC
EMPLOYEE - 12% OF THE BASIC
Hope this will help you !!
Regards
Pankaj Chandan
From India, New delhi
11ESIC CONTRIBUTION :
EMPLOYER - 4.75 % OF THE GROSS SALARY
EMPLOYEE - 1.75 % OF THE GROSS SALARY
PF CONTRIBUTION:
EMPLOYER - 12% OF THE BASIC
EMPLOYEE - 12% OF THE BASIC
Hope this will help you !!
Regards
Pankaj Chandan
From India, New delhi
For ESI contribution Basic salary, Dearness allowance, Special allowance, HRA and such other allowances which are paid in an interval of not exceeding two months will be taken whereas for EPF only Basic salary and Dearness Allowance will be taken.
There is no blue or while collar employee in labour law. ESI is applicable to all employees drawing monthly salary (excluding travelling allowance and overtime wages) of not more than Rs 10000 and EPF is applicable to all whose salary at the time of joining the establishment is not more than Rs 6500. An employee whose salary exceeds Rs 10000 will become out of coverage of ESI (from the next contribution period onwards) wheras an employee once covered by EPF will continue to be covered irrespective of any hike in salary so long as he is within the same establishment.
Regards,
Madhu.T.K
From India, Kannur
There is no blue or while collar employee in labour law. ESI is applicable to all employees drawing monthly salary (excluding travelling allowance and overtime wages) of not more than Rs 10000 and EPF is applicable to all whose salary at the time of joining the establishment is not more than Rs 6500. An employee whose salary exceeds Rs 10000 will become out of coverage of ESI (from the next contribution period onwards) wheras an employee once covered by EPF will continue to be covered irrespective of any hike in salary so long as he is within the same establishment.
Regards,
Madhu.T.K
From India, Kannur
dear kane
I would like to add a corollary to Shri TK Madhuji's advice,
With regard to ESIC, I would like to add that "Overtime" cannot be added for the purpose of coverage (i.e.) to decide whether an employee falls within the ESI coverage limit or not. However contribution is payable upon it, even in case the combined gross (gross including Overtime) crosses the ceiling limit of rs.10000/-:
eg 1: A draws the following salary:
basic 6000, DA 2000,HRA 1000, OT 3000 here gross excluding OT is 9000 hence coverable however deduct 1.75% on Rs.12000 (and not on 9000)
eg 2: B draws basic 6000, DA 3000,HRA 2000, OT 1000 here gross excluding OT is 11000 hence exempted (since more than 10000) need not deduct anything since not coverable.
From India, Madras
I would like to add a corollary to Shri TK Madhuji's advice,
With regard to ESIC, I would like to add that "Overtime" cannot be added for the purpose of coverage (i.e.) to decide whether an employee falls within the ESI coverage limit or not. However contribution is payable upon it, even in case the combined gross (gross including Overtime) crosses the ceiling limit of rs.10000/-:
eg 1: A draws the following salary:
basic 6000, DA 2000,HRA 1000, OT 3000 here gross excluding OT is 9000 hence coverable however deduct 1.75% on Rs.12000 (and not on 9000)
eg 2: B draws basic 6000, DA 3000,HRA 2000, OT 1000 here gross excluding OT is 11000 hence exempted (since more than 10000) need not deduct anything since not coverable.
From India, Madras
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ESIC-Contributi on-Transfer-For m.pdf