Basic pay 500,000; Lease rent paid for accommodation provided to an employee `200,000, amount recovered from employee `40,000, Employer’s Contribution to P.F. `75,000, Employee’s Contribution to P.F. `75,000; Reimbursement of Medical expenses `67,000, Hospitalisation expenses of employee’s family member borne by the employer `19,000, Festival Bonus Rs.20,000, Festival Advance `30,000. Compute the Employee cost.

Question

Basic pay 500,000; Lease rent paid for accommodation provided to an employee `200,000, amount recovered from employee `40,000, Employer’s Contribution to P.F. `75,000, Employee’s Contribution to P.F. `75,000; Reimbursement of Medical expenses `67,000, Hospitalisation expenses of employee’s family member borne by the employer `19,000, Festival Bonus Rs.20,000, Festival Advance `30,000. Compute the Employee cost.

Answer 1

Employee cost can be computed as follows:

Basic pay: 500,000
Employer's Contribution to P.F.: 75,000
Employee's Contribution to P.F.: 75,000
Reimbursement of Medical expenses: 67,000
Total Cost: 500,000 + 75,000 + 75,000 + 67,000 = 717,000

Therefore, the total employee cost is Rs. 717,000.