Pf and esi calculations

How to calculate PF and ESI contributions according EPF act and ESI act.

1. TheEPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 4 th March,1952. A s eries of legislative interventions were made in this direction, including the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. Presently, the following three schemes are in operation under the Act:

2. Contribution to EPF and EPS Contribution to EPF and EPS Contribution to EDLI 0.50% of basic+DA by employer. Employee’s Share (to EPF Fund) Employer’s Share (to EPF & Pen. fund) 12 % of Basic + DA 8.33% of Basic + DA 3.67% of Basic + DA Provident Fund Total:- 15.67% Pension Fund Total:- 8.33%

3. Admin . Charges for Relocation of Fund & Inspection : 1.10% of total ( Basic+DA ) towards EPF Admin. 0.01% of total ( Basic+DA ) towards EDLI scheme. There is no fee paid by employer towards pension fund . Total Monthly Contribution (Employee + Employer + EDLI + Admin Charges):- (12%+12%+050%+1.10%+0.01%)= 25.61% of ( Basic+DA )

4. Calculations: Case1 :If employ salary (basic + DA) is 5000 Employ = 12%*5000=600 Employer: 8.33%*5000=416 to EPF && 3.67%*5000=183 to EPF Acc1: 600+183 as EPF fund . Acc2:admin charge of EPF is 1.10% * 5000 =5.5 Acc10:416 into as pension scheme. Acc21:0.50%5000=25 as EDLI Acc22:Admin charge of EDLI is 0.01%*5000=0.50

5. Case2 :If employ salary (basic + DA) is 10000 then. Employ = 12%*10000=1200 Employer: 8.33%*6500=541 into EPF && 3.67% means 1200-541=659 into EPF Acc1: 1200+659 as EPF fund . Acc2:admin charge of EPF 1.10% * 10000 =11 Acc10:541 as pension scheme. Acc21:0.50%6500=32 as EDLI Acc22:Admin charge of edli is 0.01%*5000=0.50

6. The Employees State Insurance Act,1948 Object of the act: To provide for certain benefits to employees in case of sickness, maternity and injury during employment and to make provision for certain other matters in relation thereto

7. Contrubutions : From employer side is 4.75% of gross salary. From employee side is 1.75% of gross salary.

8. Case1:if employee salary is 10000 then . From employee: 4.75*10000=475 From employer: 1.75*10000=175 .

9. Case2: If employ salary is 9080 then Employer contribution 4.75% of 9080 is 431.30 but according act 432 Employee contribution 1.75%of 9080 is 158.90 but according act 159.