Provident Fund, 1952:

Provident fund is calculated @ 12% on the basic salary, which indeed is deducted from Employee's salary and the same plus 12% on the basic is contributed by the employer. So the aggregate 12% + 12% is remitted to the Provident fund Department and along with includes Administrative charges like EDLIS+Admin works contribution is 1.61%(1.11%+0.5%)

I.e.; 12%+12%+1.61%=25.61% Where as in Employer contribution 12% is divided into 8.33%(PS) + 3.67% (EPF)

PS: Pension SchemeEPF: Employee PFEDLIS: Employee direct link insurance scheme

Always PF 12% is calculated on Basic Salary.

So, Sum of covered for employee total PF is 12%(Emp) + 3.67% (Employer)=15.67%

Rest of the 8.33% covered on Pension scheme.

Example:

Employee Side- 12% of Basic(Gross is:8000/month)So if Basic of an employee is 3200/Basic+DA thenESI contribution would be 3200*12% = 384 Rupees

Employer side- 12% of Basic(Gross is:8000/month)ESI contribution would be 3200* 12% = 384 Rupees.

Admin charges – 1.61% of Basic(Gross is:8000/month)Contribution would be 3200*1.61% = 52 Rupees.

Total: 384+384+52 = 820 Rupees.

Employee State Insurance Act, 1948:

ESI : Employee State Insurance is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 10000/-permonth (w.e.f 2008) and Employer contributes 4.75%

on the gross salary of the employee and the aggregate 1.75% + 4.75% is remitted to the ESI Department.

4.75% of gross salary (Employers contribution) +1.75% of gross salary (Employees Contribution)

Note: The person who r getting more above 10,000 Gross salary, is not applicable for ESI Act

Example:

Employee Side- 1.75% of gross/monthSo if gross of an employee is 8000/month thenESI contribution would be 8000*1.75% = 140 Rupees

Employer side- 4.75% of gross/monthESI contribution would be 8000* 4.75% = 380 Rupees.

Salary Structure:(Vary from Company to Company and Cities to Cities)

BASIC + DA = 25-30% of CTC / 30-35% of CTC / 40-50% of CTC(Dearness Allowance is a component, which fluctuates to handle inflation)

HRA = Maximum 50% basic (Metro cities) 40% basic (non metro cities)

Conveyance Allowances = 800 (fixed) (Vary from company / Place to Company / Place)

Other Allowances like

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 = CTCi.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.

CTC is cost to company and the components areBasic+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)

PROVIDENT FUND(PF)

EMPLOYER'S CONTRIBUTION    

13.61% on Basic

PF8.33

%

PENSION3.67

%

EDLI0.50

%

Admin charges for Pf1.10

%Admin charges for EDLI

0.01%

TOTAL13.6

1%EMPLOYEE'S CONTRIBUTION    

12% on Basic PF12.0

0% 

GRAND TOTAL25.6

1%

ESI

EMPLOYER'S CONTRIBUTIONON GROSS

4.75%

EMPLOYEE'S CONTRIBUTION1.75

%

GRAND TOTAL6.50

%