How to calculate pf, esi, vat, sales tax etc.,
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Answer / nitin kumar (ghaziabad (iijt))
(A)EPF:
Now a days all the companies who emplyees 10 or more
employees should be covered under EPF ACT.
(B)Employee Contribution:
If Employee Basic (Basic means Basic + DA/VDA) is
Lesser than 6500
1) 12% on Employee Basic Salary is Mandatory
(If Employee Basic (Basic means Basic + DA/VDA) is more
than 6500)
1) There is option of exemption from PF & If
management wishes to cover
then employee shall be coverd under EPF Benefit
2) Employee contribution shall be limited upto the
basic of 6500 that is Rs 780/-
(Rs 780/- is 12% on 6500) OR
3) Employee contribution shall be coverd on full basic
no ceiling limit
(Eg. If employee basic is 10,000/- then 12% on the
basic is 1200/-)
(Employer Contribution ( Company Contribution))
If Employee Basic (Basic means Basic + DA/VDA) is
Lesser than 6500
1) 12% on Basic Salary is Mandatory ( Equal
Contribution of employee)
(If Employee Basic (Basic means Basic + DA/VDA) is more
than 6500
1) If employer decides to cover employee under EPF act
then even employer
shall contribute
2) Employer contribution shall be limited upto the
basic of 6500 that is Rs 780/-
Same contrbution as of Employee (Rs 780/- is 12% on
6500) OR
3) Employer contribution shall be coverd on full basic
no ceiling limit
(Eg. If employee basic is 10,000/- then 12% on the
basic is 1200/-)
Employer contribution shall be splitted into EPF
(8.33%) and PF (3.67%)
(if Employer contribtuion is above 780/- then 541 will go
for Pension fund &
balance for EPF)
Apart from the contribution there are additional charges
from employes
A) 1.10% as Admin charges on total wages of Employee
(Ac. No. 2)
B) 0.5% as EDLI Charges on the contribution wages (Ac.
No. 21)
C) 0.01% as EDLI Admin Charges on the contribution
wages (Ac. No. 22) or
Minimum of 5Rs
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / murali
A. PF Employee Contribution 12% of salary
B. Employer's Contribution
PF 3.67% of salary
Pension ( Max salary limit Rs. 6500) 8.335% of salary
Admin. Charges for EPF ( A/c No-2) 1.10% of PF wages
EDLI ( A/c No-21) 0.50% of pension wages
Admin Charges for EDLI ( A/c No 22) 0.01% of pension wagees
Salary- Basic plus DA
There is limit of rs. 6500 for calculation pension contribution i.e it can be maximum Rs. 541) suppose salary of A is Rs. 100000. In this case employee contribution will be Rs. 1200 ( 12% of rs. 10000), Employeres contribution to pension will be Rs. Rs. 541 ( Rs 6500* 8.33% and balance Rs. 659 ( 1200-541) is employers contribution to PF.
Other may reply on ESI and gratuity.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / alex p
12%+ 12% is epf but additional amount will be charged in epf
| Is This Answer Correct ? | 3 Yes | 2 No |
Answer / anjan
PF : 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 aggreate 12% + 12% is remitted to the
Provident fund Department
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 agreegate 1.75%
+ 4.75% is remitted to the ESI Department
VAT : VAT percentage is 1, 4, 12.5%. It is a tax which is
charged on the basic value of the product by the seller
from the buyer and the same is remitted to the Sales Tax
Departement. for eg if the product value is Rs. 100 and the
tax applicable is 4%, in such case a bill is raised for Rs.
104.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / sadhna
PF IS CALCULATED ON BASIC SALARY OF EMPLOYEE @12% AND 12%
OF EMPLOYER.
ESI IS CALUALTED ON GROSS SALARY @1.75% OF EMPLOYEE & 4.75%
OF EMPLOYER.
V
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / bhargavi
Provident fund is calculated on basic + DA.The contribution
fromemployee part is 12% % employer is 13.70%(Including
admin charge.The amount which goes to the provident fund is
12%(Employee contribution)3.67%(Employer
contribution),8.33% will go to pension fund(EMployer
contribution,Which can be draw once afer continous
contribution of 10years)The employee eligible for pension
fund will be only after ataining afer 50years of age.
Employee State Insurance:Ia an medical insurance & Social
security provided to the employees in terms of
medical.Sickness & maternity benefits.The employees whose
gross salary is lees or equal to 15000 will come under
esi,The percentage of contribution is 1.75% will be
employee contribution & 4.75% will be employer contribution.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / amita pandiya
PF IS CALCULATED ON BY DEDUCTING 12% OFF BASIC SALARY OF
EMPLOYEE AND ADD 12% SAME AS EMPLOYEE FROM EMPLOYER AND
SUBMITTED TO EMPLOYEE PF ACCOUNT.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / mahendra singh
PF deduction on Our Basic Salary 12% +(12% Company site)
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / rajshree
ESI IS CALCULATED AS FOLLOWS:-
EMPLOYERS CONTRIBUTIONS-4.75% & EMPLOYEES CONTRIBUTION:-
1.75%
| Is This Answer Correct ? | 1 Yes | 0 No |
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