How to Calculate PF and ESI with Example in 2018

Employees whose monthly basic salary + DA is less than 15000 are eligible for employee provident fund scheme 1952 and employees whose monthly gross salary is less than 21000 Rs are eligible for employee state insurance scheme. Here you can know how to calculate PF and ESI with examples.

Download PF & ESI 2018 Calculation Excel Sheet

How to Calculate PF and ESI with Example

Difference Between PF & Pension

  • The provident fund account of every employee is divided into Two parts, they are PF account and pension account. The amount deposited in PF account can be withdrawn at any time after 2 months of leaving the job.
  • But the amount deposited in pension account is not withdrawable after 10 yrs of service of the employee. It will be paid as a monthly pension after 58 yrs of the employee. If your service is less than 10yrs then you can withdraw your total pension like PF amount. Once it crosses 10yrs then you can’t able to withdraw it.

How to Calculate PF with Example in 2018

PF Percentage 2018 (On basic + DA), PF Calculation Example For Basic Wage 14000 Rs
Employee Contribution a/c 1 12% 1680
Employer Contribution
PF a/c 1 3.67% 513.8
Pension a/c 10 8.33% 1166.2
PF admin Charges a/c 2 0.85% 119
EDLI Charges a/c 21 0.5% 70

The above account numbers 1,2,10,21,22 are present on PF challan, generally, employees don’t need to know about these, only employers should be aware of these EPF challan account numbers.

Also read: How to calculate PF for basic salary more than 15000 Rs

How to Calculate ESI with Example in 2018

ESIC eligibility salary limit

Gross salary of 21000 Rs or below

ESI contribution rate 2018

Employee ESI percentage 1.75%

Employer ESI percentage 4.75%

Also read: How to use ESIC card in private hospital

Example: If an employee gross salary is 2000 Rs then his or her ESI contributions will be like this

Employee ESI contribution 1.75% = 358.75

Employer ESI contribution 4.75% = 973.75

Total ESI contribution = 358.75+973.75= 1332.5 = 1332

Note: When the total ESIC amount is in decimals then the nearest value will be considered. You don’t need to worry about this because it will be calculated automatically¬†when you file ESIC returns online at ESIC portal.

3 thoughts on “How to Calculate PF and ESI with Example in 2018”

Leave a Comment