Definite Managements India Private Limited

Assisted by our affluent industry indulgent and proficiency in this arena, we are able to provide ESIC and PF services. Provided services are imparted by adroit personnel who hold vast knowledge in their respective realm that assists them in imparting these services in a well-organized way.

PF:

The Provident Fund (PF) contribution is 12% of PF Wages from both employee and employer. For the calculation, the maximum limit of Basic is Rs 6500/-. It means even if the employee’s PF Wages is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780/-. However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges.

The statutory compliance requirement for ESIC deduction is as follows: ESIC fund, maintained by ESIC, is applicable to employees earning Rs 21,000 or less per month to provide the cash and medical benefits to them and their families. This fund is a contributory fund in which both the employer and employee contribute 4.75% and 1.75% respectively to make it a total of 6.5%. For ESIC calculation, the salary comprises of all the monthly payable amounts such as basic pay, dearness allowance, city compensatory allowance, HRA, incentive allowance, attendance bonus, meal allowance and incentive bonus. The salary, however,does not include annual bonus, retrenchment compensation, encashment of leave and gratuity.

ESIC Calculation :
Consider the salary of an employee is Rs 9000 per month then the ESIC calculation for the employee would be calculated as: ESIC = 9000*(1.75/100) = 158 Note: Employees contribution is 1.75 percent The ESI calculation for the employer’s contribution would be calculated as:

9000*(4.75/100) = 428
Note: Employer’s contribution is 4.75 percent

In case the salary goes above Rs 21,000 per month during the contribution period, the ESIC would be calculated on the higher salary. For example, if the salary of an employee is raised to Rs 17,000 per month during the ESIC contribution period, then the ESIC would be calculated on Rs 17,000 instead of Rs 15,000.
Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution.