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ESIC getting calcualted after September even the basis is > 15K

Former Member
0 Kudos

Hi All,

I have few cases in whcih the ESIC amt is getting calculated for few cases where the /112 is > then 15K

For the month of October 2011;

/112 ESI Basis 15,630.00

/113 ESI Basis N 12,230.00

/3E1 ESI contrib 274.00

/3E2 Er ESI cont 743.00

/3EA Actual ESI 15,630.00

I am not able to understand why the system is calculating ESIC for this employee when he is not eligible for ESIC. Also, if i delimit the IT - 0588 till September it does not deduct.

Even I tested for normal case where /112 < 15K & /112 > 15K the calculation is proper. Please let me know is there any switch or something which autommatically checks the eligibilty for ESIC in the system.

Regards,

Prasad Lad

Accepted Solutions (1)

Accepted Solutions (1)

jayantvenkata
Product and Topic Expert
Product and Topic Expert
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Hello

ESI deduction is done based on the nominal pay as calculated.

nominal_pay = it-betrg * ( vdays / vksoll )

Suppose an employee joined in June 2011,say on 22.06.2011.

No. of working days in the month = 8

And for this 8 days his /113 is 11.147,00

Payroll month June 2011 no.of days = 30

so the nominal salary for this person comes up as,

$nominal_pay = it-betrg * ( vdays / vksoll )

nominal_pay = 11,147.00 * (30/8 )

= 41801.25

now Rs 41801.25 is greater than Rs. 15000, so ESI will not be deducted for this employee.

You may check your calculations likewsie.

/113 is formed up in the rule in72 and it depends upon the processing

class 72. The deduction for ESI takes place on actual pay but the

eligibility is checked based on nominal pay. This is the standard behavior of the system.

Thanks and Kind Regards

Ramana

Answers (1)

Answers (1)

Former Member
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Hi,

I hope the system is calculating correctly,

since the WT /113 ESI Basis N 12,230.00 Lessthan 15K. this is the WT to compare the limit.

and this is the WT /112 ESI Basis 15,630.00 to calculates ESIC

In your case the limit is 12, 230 so it is calculated.

Thanks

Cheera

Former Member
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Hi,

I checked why the ESIC basis N is coming as 12,230 in the system & found that there is a wage type Commuting Allowance in which the Processing class 72 is maintained as 3. Due to which the amount is not getting added in /113 wage type & the ESIC basis Nominal is used for calculating the ESIC amt for that employee.

Now i made the processing class - 72 as 4, it is not deducting the ESIC amt for that employee, whcih servers my req.

Regards,

Prasad Lad