A fixed recurring amount paid periodically by an employer to an employee.

Wages are paid to employees related to production / development process.

Salaries are paid to employees related to administration and establishment.

Provident fund is calculated as a percentage of salary. The present rate is 12% comprising of Employer Contribution of 3.67% to PF, Employer Contribution of 8.33% to EPS). The amount along with interest is refundable on retirement and transferable on change in job.

ESI is contributed by Employee as well as Employer. 

• Employee -1.75% of gross/month
• Employer - 4.75% of gross/month

Employees State Insurance Corporation (ESIC) supervises the ESI scheme.

These are allowances given by the employer to the employee.

Children Education Allowance is tax exempted up to Rs. 100/- per month per child maximum for two children.

Children Hostel Allowance is tax exempted up to Rs. 300/- per month per child maximum for two children.

It is a summary of Salary for a month for a particular employee.

Apart from 12%, an employee can contribute certain amount voluntarily to his PF fund which is called as Voluntary PF.

When an employee reaches an age of 58 and is still working, the contribution towards Pension Scheme is stopped and the entire contribution of employer is considered only for PF Fund.