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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 Scheme
EPF: Employee PF
EDLIS: 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 then
ESI 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/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI 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 = CTC
i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
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
+ insurance Premium (in case of Group insurance)

PROVIDENT FUND(PF)
EMPLOYER'S CONTRIBUTION
PF
PENSION
EDLI
Admin charges for Pf
Admin charges for
EDLI

13.61% on Basic

TOTAL
EMPLOYEE'S CONTRIBUTION
12% on Basic

8.33%
3.67%
0.50%
1.10%
0.01%
13.61
%
12.00
%

PF

25.61
%

GRAND TOTAL

ESI
EMPLOYER'S CONTRIBUTION

4.75%
ON GROSS

EMPLOYEE'S CONTRIBUTION
GRAND TOTAL

1.75%
6.50
%