raiashu06 Started The Discussion:
The Esi deduction limit is 10,000. if an employee gross salary is 10,000 ( basic+ Hra+DA+Convence) then he coverd on Esi act.:)
if Employee is drawing 10000 gross salary then he will be elegible for under esi act , but his salary is exceed 10000 than he is out of Esi act.
Esi limit = 10000
esi limit 10000 RS
Pf limit 6500 RS
An employee whose gross salary is less than or equal to Rs 10,000, then he is eligible for the ESI benefits.
Here the contribution per month by the employer is 4.75% of gross salary
and the contribution by the employee is 1.75% of gross salary.
But when the employee leaves the company, he wil not get any money of what is contributed towards ESI. This is not the case in PF.
My dear friend,
The ESI deduction limit is for gross salary of Rs. 10,000/- P.M. Here salary means package without conveyance. It includes other allowances, payment for intervals not exceeding 2 months etc.
For availing ESI Benefit an employee should not draw more than Rs. 10,000/- p.m.(Gross Salary). It includes basic+da+hra+other fixed allowances+payments at intervals not exceeding 2 months. But it doesn't include conveyance,Travelling concession or contribution by employer.
company share 4.75%
employee share 1.75%
For availing PF Benefit it has to be calculated on basic salary+da+retaining allowance subject to the maximum basic salary+da+retaining allowance of rs. 6500/-. More than such amount org's will.
company share 12%
company share EDLI & adm charges 1.61%
employee share 12%
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> form a esic rules washing allowance esi deduction retaining allowance esi limit esi benefits form 1 esi act employee share gross salary esi and pf basic salary form 16 Location-India-New Delhi Complete List Of Categories
Interesting Relevant Discussions