⚡ Payroll & Compliance • Step-by-Step

PF & ESIC Calculation

Complete guide with explanations, formulas, and salary calculations.

payments

1. Provident Fund (PF/EPF)

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

Employee Share
12%
Employer Share
12%
EPS (Pension Scheme)8.33%
EPF (Provident Fund)3.67%
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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 (₹) DA (₹) Gross (₹) 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
Key Reminders
  • PF calculated on Basic Salary according to days.
  • ESIC calculated on Gross Salary according to days.
  • Statutory compliance must be processed by the 15th of next month.
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