Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

Generally how ESI is calculated in Corporates?

Generally how ESI is calculated in Corporates?`?

Please suggest some examples of ESI calculations of Employees.

2 Answers

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  • 1 decade ago
    Best Answer

    ESI is calculated on employees GROSS salary, its also includes Incentives & NFH (National Festival Holidays & other Allowances

    Both Employer & Employee Must contribute ESI Pay on Employee Gross Salary

    First you need to calculate the gross salary of the employee i.e. CTC minus PF and ESI. But here we want to calculate ESI itself so do one thing apply this formula.

    (CTC-PF)* % of employer contribution/% of employee contribution

    ie. suppose % of employer contribution is 4.75%

    suppose % of employer contribution is 1.75%

    then apply formula

    (CTC-PF)*4.75/104.75

  • Eunice
    Lv 4
    4 years ago

    For the best answers, search on this site https://shorturl.im/axRnz

    It varies from state to state . But generally it is like this : Employees' contribution - 1.75 % of wages Employers' contribution - 4.75 % of wages

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