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Payroll India ESI issue

Former Member
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50

Hi Guys,

One of my client requirement is, if the salary of an employee crosses 7500/-, automatically the ESI contribution will become zero.

"<b>NOTE:</b> If the salry hiked in <b>May month</b> ESI contribution should be there till <b>September</b> (According to the Act)".

Presently SAP provided a report, it will give list of employee whose salary is crossed 7500/-

So is it possible that the ESI contribution should become zero

Please guide me on this

Regards

Prasad

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi to all,

Although it quite late but just to clarify the issue i am replying. actually ESI india has two contribution period 1) from Aprail to september and 2 ) from October to march.Presently all the employees how has the salry less then 10,000 will come under the ESI contribution.And once ESI has been deducted in any contribution period then it inspite of any increase in the salary ESI will continue to deduct in the runing contributiion period.

Regards

Former Member
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Hi

Do u mean to say

Ex if a person ESI deducted suppose for <b>contribution period 1) from Aprail to september</b> as u said.

One employee first ESI is deducted on June now his contribution towards ESI will be be up to month Septmeber only or it will deducted to next consecutive months.

Can u plz specify for more clarity.

It will help others when you raised this issue.

Manoj Shakya.

Former Member
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Hi,

ESI deduction is taken care by SAP. During the Payrol rum function INESI will handle this.

In the view v_512w_d you will have to use the combination of cumulation 12 and 13 for the wage types for which ESI has to be considered.

Hope this helps.

Regards,

Devendra

Former Member
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You can do this my user exit enhancement

PBAS0001(PA: Pers.Admin./Recruitment: Default values and checks).