PF & ESIC CALCULATION

Complete Guide with Explanation & Formulas

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1. PROVIDENT FUND (PF/EPF)

Mandatory for employees with Basic Salary + DA ≤ ₹15,000

Employee Share
12%
Employer Share
12%
Employer Breakup (12%)
  • EPS (Pension Scheme) 8.33%
  • EPF (Provident Fund) 3.67%

2. ESIC (EMPLOYEE STATE INSURANCE)

Mandatory for employees with Gross Salary ≤ ₹21,000

Employee Share
0.75%
Employer Share
3.25%
ESIC provides medical & healthcare benefits for employees and their dependents.

SALARY SHEET EXAMPLE (MAY 2025)

Employee Name Basic Salary (₹) DA (₹) Gross Salary (₹) PF 12% (₹) ESIC 0.75% (₹) Net Salary (₹)
M. AHAMAD 15,000 10,500 25,500 2,652 191 19,257
NIRAJ N. 15,000 10,500 25,500 2,652 191 19,257
Formulas

Employee PF: Basic Salary × 12%

Employee ESIC: Gross Salary × 0.75%

Net Salary: Gross - PF - ESIC

Important Points
  • PF calculated on Basic Salary according to days.
  • ESIC calculated on Gross Salary according to days.
  • PF help in future savings & retirement.
  • Both are statutory benefits for employees.
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