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How to calculate PF & ESI on salary?

GeneralClass 12AllAnswered 27 Mar 2026
Answer

PF (Provident Fund) in India:

  • Employee contribution: 12% of basic salary
  • Employer contribution: 12% (with breakdown to EPF, EPS)

ESI (Employee State Insurance):

  • Employee: 0.75% of gross salary
  • Employer: 3.25% of gross salary
  • Applicable if salary ≤ ₹21,000/month

Example for ₹20,000 basic:

  • Employee PF: 20,000 × 0.12 = ₹2,400
  • Employee ESI: 20,000 × 0.0075 = ₹150
General · Class 12