Calculating ESI and PF contributions can give nightmares to Recruiters and HR. To make the matter easy and precise, here's the most authentic and trusted information spread over the internet assimilated just for you. Here you go!
ESIC contributions- Periods Apr to Sept and Oct to Mar
a. 1.75% of gross salary Employee will pay and 4.75% Employer will pay. Salary above 15 K, ESIC contribution is not applicable. In case of 28 days in a month, adjust the gross salary accordingly.
if the salary increases more than 15 K during promotion than continue paying the ESIC as per enhanced salary.
PF Contributions- In metro cities 50%, 40% in non-metro cities, rest is company policy.
a. 12% is employee contribution, Employer EPS 8.33 to pension scheme plus EPF 3.67 (Max 541)
Plus Professional tax (Ptax is levied) .
Let's know about ESIC a little more:
1 It is applicable to establishments with minimum people 10 or 20. Yes in some states it is 10 and the others 20. Once subscribed under ESIC, can't roll back even the number goes less than 10.
2 Under Sec 40(4) , Non payment or delayed payment of ESIC from the wages of the Employee amounts to 'Breach Of trust' and is punishable under IPC 406.
3 Regulation 31-A, simple interest of 12% per annum each day of default.
4 It is not applicable to railways and mines act.