PF, ESIC AND PROFESSION TAX APPLICABILITY
Posted @ February 24, 2013, 10:55 am under (PF, ESIC AND PROFESSION TAX)
ESI is applicable only for those employees whose gross salary is up to 15,000/- rupees per month and its calculated @ 1.75% of gross salary from employee side and 4.75% of the same from employer's side.
PF is calculated on basic salary+Dearness allowance only.. It is calculated @ 12% of basic salary from both the sides. Out of 12% of employer's contribution only 3.67% goes to PF and rest 8.33% goes to Pension Fund. The maximum ceiling to be covered under this Act is 6500/- basic salary, employees getting more can also be included. Ceiling of Rs. 6,500 not applicable on Expat. Mandatory PF deduction applicable in these cases on Gross salary.
Professional Tax is calculated on gross per month and its fixed slabwise. However it vary from state to state