Generally how ESI is calculated in Corporates?
Generally how ESI is calculated in Corporates?`?
Please suggest some examples of ESI calculations of Employees.
- 1 decade agoBest 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