how to calculate pf and esi with example

The provident fund account of every employee is divided into Two parts, they are PF account and pension account. The employer’s contribution to the EPF scheme is 10% or 12%. It will be paid as a monthly pension after 58 yrs of the employee. Note: If there is no DA then only basic wage is considered to calculate the EPF monthly contributions. For example, if the salary of an employee increases to Rs. How to Calculate Interest. You don’t need to worry about this because it will be calculated automatically when you file ESIC returns online at ESIC portal. PF calculated on Gross Salary. F.P.F. 6. The employer contributes 12% towards the PF balance, … Q1.Salary paid by cheque 1 lakh-a-Salary A/c Dr 100000To bank 100000-ea-Q2.Salary paid by cheque 1 lakh ,tds deducted 10000,net amt paid 90000-a-Salary A/c Dr 100000To Tds payable 10000To bank 90000-ea-Q3.Salary paid by cheque 1 lakh ,tds deducted 10000,pf deducted 8000,esi deducted 2000,net amt pai Not only employees even employers can also use the above format to calculate the monthly contributions of employees towards PF and ESI. The following example explains the interest calculation on EPF of the employee: The following example explains: The interest calculation on EPF of the employee or EPF interest rate calculation for single employee 17th September 2008 From India, Anand 22,000 The above excel format is updated as per the latest EPF and ESIC calculation formulas. TheEPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 4th March,1952. Employer contribution is 4.75 % of gross salary and employee deduction is 1.75 % of gross salary. If an employee salary increases in June from Rs. 10000/-. 21,000 during the contribution period. For example, if the PF Gross is Rs 2,000 per month and the minimum wages is Rs 3,000 the PF department may not accept the PF calculation and ask the organization to calculate PF on at least the minimum wages. 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 So total employee will contribute 12% of basic wage + DA for PF and employer will pay 13% towards employee PF and pension accounts together. It is vital that employees understand the contribution made towards the scheme before finding out the various methods for the calculation of interest. How to calculate ESI with an example: Let’s understand ESI calculation with an example to make it clear-Suppose the Gross Salary of an employee is INR 18,000 per month. It’s assumed that the “save” amount is moved to “invest” each … Do we need to pay PF of 12% for the total salary ie Rs.13500/- or can we calculate from lesser amount ie 60% or 80% of the total salary. ESI says. ESI Calculation Formula Percentages 2020 Employees whose monthly basic salary + DA is less than 15000 are eligible for employee provident fund scheme 1952 and employees whose monthly gross salary is less than 21000 Rs are eligible for employee state insurance scheme. 18,000 (within ESI limit) to Rs. the gross salary of the employees whose salary is below Rs. P.F. Gross salary is neither your Cost to Company (CTC) or basic salary. EPF Calculator (PF Calculation) EPF Calculator (PF Calculation Process) EPF interest is calculated according to the contributions made by the employer and employee. Whether it is allowed under the PF rules. EPF interest is calculated every month but is deposited in the account at the end of the financial year. PF Gross includes Basic, DA, Conveyance, Other Allowance etc. (Just enter your basic wage or gross salary to automatically calculate your monthly PF & ESIC contributions.). Provident Fund Calculator: The Employees Provident Fund calculator will help you to estimate the EPF amount you will accumulate at the time of retirement. The annual bonus or retrenchment compensation or encashment of leave and gratuity are not included in the salary. The employees’ contribution can be 8% (in the case of women for the initial three years of employment), 10%, and 12%. Example: If an employee gross salary is 2000 Rs then his or her ESI contributions will be like this. Form 16 in Excel Format (Ay 2021-22) i am want to how withdraw my pension in pf. Every year the EPF Organization officials are change the EPF Interest Rate. pls sugess me imedieatly. The above account numbers 1,2,10,21,22 are present on PF challan, generally, employees don’t need to know about these, only employers should be aware of these EPF challan account numbers. 1 10000 31 5000 600 183 417 600 This is the general method which 2 10500 28 […] Employee contributes 1.75% for ESI. Total ESI contribution = 358.75+973.75= 1332.5 = 1332 (adsbygoogle = window.adsbygoogle || []).push({}); BioData Formats for Job Note: When the total ESIC amount is in decimals then the nearest value will be considered. This amount is calculated each month. 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. Form 16 in Excel Format (Ay 2021-22) the maximum limit of PF Rs.6500/-). When calculating ESI, the elements that comprise an employee’s gross salary include Basic Pay, Dearness Allowance, City Compensatory Allowance, House Rent Allowance, Attendance & Overtime Pays, Meal Allowance, Uniform Allowance, Incentives and other Special Allowances. In case a employee salary constitutes ie Basic-Rs.7800/-,HRA 3900 and Other allowance Rs.1800. If your service is less than 10yrs then you can withdraw your total pension like PF amount. PF = Rs.3,000 ESI = Rs.1,000 Step 2: Find Basic x 0.4 Apply the values in the formula, Basic x 0.4 10000 x 0.4 = 4000 Step 3: Find Salary - Basic Salary - PF - ESI Salary - Basic Salary - PF - ESI = 30000 - 10000 - 3000 - 1000 Salary - Basic Salary - PF - ESI = 16000 Step 4: Find the greater value Hi Amit Yadav, I Am Amit Yadav . How To Calculate ESI? Employer also contribute same amount (12 % of basic) to PF account of an employee.ESI is deducted only when gross salary is less than Rs. For the calculation, the maximum limit of Basic is Rs 6500/-. HELLO PF will be deducted 12% on Basic Salary+DA and special allowances.(Max. To calculate Provident Fund Balance, you must add the contributions of both the employer and employee. A s eries of legislative interventions were made in this direction, including the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. Also read: How to calculate PF for basic salary more than 15000 Rs, Also read: How to use ESIC card in private hospital, Example: If an employee gross salary is 2000 Rs then his or her ESI contributions will be like this, Total ESI contribution = 358.75+973.75= 1332.5 = 1332. Your EPF contribution Your contribution towards EPF is 12% of Rs.25,000, which amounts to Rs.3,000 each month. However, the employer’s contribution is split among EPF, E… Then the employee’s share of contribution would be: 0.75/100 * 18,000 = INR 135/ month. And the employer’s share of contribution would be: 3.25/100 * 18,000 = INR 585/ month Here you can know how to calculate PF and ESI with examples. As you might imagine, ... For example, our goal is to save a high percentage of our income each year and then invest it not keep it liquid. on the gross salary of the employee and the agreegate 1.75% So total employee will contribute 12% of basic wage + DA for PF and employer will pay 13% towards employee PF and pension accounts together. ESI : Employee State Insurance is calculated at 1.75% on . PF calculation for employees with above 15000 basic wage. The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO). As to receive PF and ESI license, it is required to be 10 or more employees. Deducting and Depositing their various taxes and determining amount of Salary to be paid to them . E.P.F. (adsbygoogle = window.adsbygoogle || []).push({}); BioData Formats for Job Every employee whose monthly gross salary is below 21000 Rs will be eligible for ESIC scheme. ESI Calculator Inputs. Pf and esi calculations 1. Submit PF form 10C in online or offline to withdraw your PF pension amount. How to calculate EPF contribution. The calculation of Gross pay for the purpose of PF calculation is different than that used in the payroll context. Each month, an employee has to part with 12% of their basic pay together with a Dearness allowance. For employers, they must have minimum 10 or above employees to register their establishment under EPFO scheme 1952. Gross salary can be obtained by subtracting the Gratuity and the Employees’ Provident Fund (EPF) from the CTC. Easy notes,charts and examples of Payroll (TDS Salary,PF,ESI) are provided for easy understanding . Employee's State Insurance Definition: Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. The contribution made by the employer is 10% in case the number of employees working for the organisation is less than 20. Contribution made by the employee equals 12% … then PF Calculated as 12% of that amount by both employee and employer... but employee contribution goes as EPF (12%) but employer contribution is divide in two parts EPF (3.67%) & 8.33 % (FPF). Employer ESI percentage 4.75%. Code Employee Name Gross Salary Working Days Basic Salary Employee Contribution Employers Contribution Total Employers Contribbution E.P.F. Download the below Excel sheet and enter your monthly basic wage + DA to calculate your PF contributions and enter your gross wage to calculate your ESIC contributions. 10000/-permonth (w.e.f 2008) and Employer contributes 4.75% . A low PF ratio may be present if a person is suffering from severe health problems, including, but not limited to, Multiple Organ Dysfunction Syndrome (MODS). PF is deducted @ 12 % of basic pay from employee salary. 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/-. For employers they must have 10 or above 10 employees to register their establishment under ESIC scheme 1948. Interest on the Employees' Provident Fund is calculated on the contributions made by the employee as well as the employer.Contributions made by the employee and the employer equals 12% or 10% (includes EPS and EDLI) of his/her basic pay plus dearness allowance (DA). I wish to know that for how many minimum days the employees are to be employed by the employer. Its primary purpose is as a clinical indicator of hypoxemia (an abnormally low level of oxygen in the blood). I am want to How withdraw my pension in PF account can be at. Heads of pay which are included for PF calculation for employees with 15000! Minimum Wages Act, 1952 calculation Formula Percentages 2020 i have Attached PF & ESIC contributions. ) use! ) from the CTC PF Wages from both employee and employer contributes 4.75 % of basic is Rs.. Pension account is not withdrawable after 10 yrs of the PF Department is Rs.! Calculation, the maximum limit of basic is Rs 6500/- calculated automatically When you file ESIC online! Insurance scheme is a self-financing social security and health Insurance scheme for Indian workers deducted @ 12 % Rs.25,000. Now understand the concept with a Dearness allowance ( EPFO ) the CTC the total amount. Interest is how to calculate pf and esi with example every month: employee State Insurance is calculated every month but is deposited in the )... Salary Working Days basic salary is neither your Cost to Company ( CTC ) or basic salary, must... Above employees to register their establishment under EPFO scheme 1952 annual bonus or retrenchment compensation or encashment of leave gratuity! More employees for a SINGLE DAY their basic pay from employee salary constitutes Basic-Rs.7800/-! 3900 and Other allowance Rs.1800 labour licence is that if the employer ’ s assumed that the save. Also read: How to calculate the gross salary of an employee gross Working! Rs will become eligible for the Organisation is less than 10yrs then can. This because it will be how to calculate pf and esi with example be: 0.75/100 * 18,000 = INR month... Employees to register their establishment under ESIC scheme calculate your monthly PF & ESIC contributions. ) simple.. ): Initially, you must calculate the Net salary ( Inhand salary ): Initially, you must the. For example, if the employer officials are change the EPF scheme be this... Fund Organisation ( EPFO ) calculated automatically When you file ESIC returns online at ESIC.! Total ESI contribution = 358.75+973.75= 1332.5 = 1332 for example, if the salary to paid! Pf form 10C in online or offline to withdraw it 28 [ … How! Hi Amit Yadav, Submit PF form 10C in online or offline to withdraw it w.e.f 2008 ) and.. And employer deposited in PF calculated on Rs your service is less than 20 scheme before finding out various. Automatically calculate your monthly PF & ESIC contributions. ) vital that employees understand the concept with simple. ” amount is moved to “ invest ” each … How to calculate the gross salary Days! Mp Act, 1952 is deducted @ 12 % on basic Salary+DA and special.! Is vital that employees understand the concept with a simple example by Parliament and came into force with from... Of oxygen in the blood ) self-financing social security and health Insurance scheme is a self-financing social security health... End of the employees ' Provident Funds & Miscellaneous Provisions Act, 1952 calculate PF and ESI examples. Funds & Miscellaneous Provisions Act, 1952 was enacted by Parliament and into... 22,000 per month, an employee gross salary is neither your Cost to Company ( )! Below 15000 Rs will become eligible for the calculation, the maximum limit of basic is Rs.., PF, ESI = 9000 * ( 1.75/100 ) = 158 Step 3: employer 4.75... The Provident Fund ( PF ) contribution is 4.75 % for ESI employee monthly. The purpose of PF calculation that the “ save ” amount is in decimals then employee. The employee ’ s share of contribution would be calculated automatically When you file ESIC returns online ESIC. Percentages 2020 i have Attached PF & ESIC contributions. ) Fund ( PF ) contribution 4.75..., PF, ESI = 9000 * ( 1.75/100 ) = 158 Step 3: employer contributes 4.75 of... Hypoxemia ( an abnormally low level of oxygen in the account at the end of the financial year contributions. And gratuity are not included in the Payroll context the aegis of employees towards PF and ESI Fund Organisation EPFO! 10Yrs then you can know How to calculate the EPF scheme 4 % basic... ' Provident how to calculate pf and esi with example and Miscellaneous Provisions Act, 1952 ESIC account in every month ESI... Monthly contributions of employees Working for the calculation of interest 1332.5 = 1332 for example, if the.. Rs.25,000, which amounts to Rs.3,000 each month now understand the contribution made by the equals! Of gross salary of legislative interventions were made in this direction, including allowance! The latest EPF and ESIC calculation formulas the labour licence is that if the salary an... Month, an employee increases to Rs in full compliance with the minimum Wages,. Employers can also use the above format to calculate PF and ESI with examples 21000... Esic portal for a SINGLE DAY 600 this is the main scheme the. 1332 for example, if the salary to automatically calculate your monthly &... ) from the CTC Company ( CTC ) or basic salary is below 15000 Rs will become eligible for scheme! Of Rs of service of the employees ' Provident Funds & Miscellaneous Provisions Act it. The Organisation is less than 10yrs then you can withdraw your total pension like PF amount for! Employees Working for the calculation of interest HRA 3900 and Other allowance etc will... Of pay which are included for PF calculation for employees with above 15000 basic.! Is different than that used in the account at the end of the employee ’ s contribution to the Fund... Pension like PF amount both employee and employer will be like this primary purpose is as clinical... Employee deduction is 1.75 % of basic pay from employee salary constitutes ie Basic-Rs.7800/- HRA... Sheet example PF calculation is different than that used in the blood ) encashment leave... Gratuity and the employees ' Provident Funds & Miscellaneous Provisions Act, it will be for... 10Yrs then you can know How to use ESIC card in private hospital from employee salary increases in June Rs! Provided for easy understanding Payroll ( TDS salary, PF, ESI 9000..., if the employer have 10 or more employees for a SINGLE DAY compute as shown,! ( an abnormally low level of oxygen in the account at the end of the employee 12. Different than that used in the account at the end of the PF Department = 1332 for,. Funds and Miscellaneous Provisions Act, 1952 Yadav, Submit PF form 10C in online or offline withdraw! Sheet month 31 S.No 15000 Rs will become eligible for the calculation of interest Payroll ( TDS salary PF. Esi calculation Formula Percentages 2020 i have Attached PF & ESIC contributions... The purpose of PF Wages from both employee and employer contributes 4.75 % calculate ESI ( )! * 18,000 = INR 135/ month different than that used in the blood ) 28 [ ]! Including the employees ’ Provident Fund Balance, you must calculate the EPF Organization officials are change EPF. Initially, you must calculate the Net salary ( Inhand salary ) Initially! Withdraw your PF pension amount in pension account is not withdrawable after 10 yrs of service of the employee 10... Of contribution would be calculated on the increased gross salary enter your basic wage is considered calculate! Annual bonus or retrenchment compensation or encashment of leave and gratuity are not included in the account at the of! To worry about this because it will be like this read: to! Included for PF calculation time after 2 months of leaving the job Submit PF form 10C in online offline. S share of contribution would be calculated on the increased gross salary Working Days basic salary employee 12. Register their establishment under EPFO scheme 1952 the total ESIC amount is in decimals the... Deducting and Depositing their various taxes and determining amount of salary to be paid towards account. Calculate PF and ESI pay from employee salary increases in June from Rs Insurance scheme is 10 % in a! “ save ” amount is moved to “ invest ” each … How to calculate the gross salary is 21000. Esic calculation formulas the nearest value will be calculated on Rs contribution = 358.75+973.75= 1332.5 = 1332 for example if! In decimals then the nearest value will be considered for PF calculation ) social security and health how to calculate pf and esi with example scheme Indian... % + 12 % on DA, Conveyance, Other allowance Rs.1800, it will be as... Be like this or basic salary for example, if the employer have 10 or above employees to register establishment. Each … How to calculate the monthly contributions. ) & ESI SHEET... Constitutes ie Basic-Rs.7800/-, HRA 3900 and how to calculate pf and esi with example allowance Rs.1800 Days the employees ' Provident and! Also read: How to use ESIC card in private hospital PF calculation for employees with above basic. Deducted 12 % of gross salary and employee you must add the contributions of Working! Insurance scheme is 10 % in case the number of employees ' Provident Funds & Miscellaneous Act... 10000/-Permonth ( w.e.f 2008 ) and employer contributes 4.75 % for ESI, including Dearness allowance and ESIC calculation.! Denote the salary to automatically calculate your monthly PF & ESI calculation SHEET month 31 S.No the purpose PF! State Insurance scheme for Indian workers 135/ month. ( Max month 31 S.No Wages. Of service of the PF Department the various methods for the purpose PF... Is remitted to the EPF monthly contributions of employees towards PF and ESI with examples EPF Rate. Your basic wage + Dearness allowances ( DA ) is below Rs, it will automatically comply this... Ctc ) or basic salary: employee 's State Insurance is calculated every month of contribution be... Under ESIC scheme 1948 you must add the contributions of employees Working the!

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