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Separation Action-- Payroll India

Active Contributor
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Dear Experts,

We have requirement like if an employee get separated in mid of a period,ESI and LWF should be calculated for that periods salary.

For eg:if he worked for 4 days ,ESI should be based for these 4 days and LWF should be per month .

When i run the payroll its not calculating accordingly as per standard.How can it be done.

Thanks & Regards


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Answers (1)

Answers (1)

Active Contributor
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Dear Jimson

Have you solved this Problem? if yes then please share the solution.

I have the same requirement.


Ankit Vasavada

Product and Topic Expert
Product and Topic Expert
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Hello Ankit

Regarding your query, ESI is not deducted after the seperation date because person is not there in the company.

      On termination, infotype 0588 subtype 0001 record should be delimited and if the payroll is run in the same month, then the ESI deductions are calculated for the number of days worked.

      Since the payroll is run in current Month , ESI basis (wagetype /3EA) calculated in previous month (retro run) is carried forward to may as /ZEA and the ESI deductions are not made in this month .

This is because no record exists in IT 0588 subtype 0001 and hence no ESI calculations are made.

     There may not be many such cases existing. However as a workaround you may try the following for this employee.
     1. Delimit the IT 0588 subtype 0001 record on Termination date (termination date).
     2. Create a second record for this employee for the Current period  (period in which the settlement is done) by copying the existing IT 0588 subtype 0001 record.
     3. Run the payroll for may and verify the ESI deductions.

Please note that this is the standard behavior of the system for ESI  retros. If the payroll is not run in the month of separation then this is the only workaround possible because the wagetypes are not created otherwise.

Thanks and Kind Regards