ESI Deduction even employee salary is > 15,000 / –

Scenario:

Employee’s regular pay components are Basic & SA = 13,000/-  which comes under ESI deduction. Now lets take another scenario where some time’s employee will work over time & he may get some additional amount i.e  7,000 /- ( which is a Irregular pay component )

IT 0008 —> 13,000/-, IT 0014 OT wage type —> 7,000 / – = 13.000+7.000=20,000

ESI calculation 20,000 * 1.75% = 350 /-

Solution:

Based on cumulation class (/112 , /113 ) we can achieve this scenario

IT 0008:

IT 0014 Overtime wage type:

IT 0588 Sub type –> 0001 ESI

V_512W_D Maintaining cumulation class to each wage type

Now run payroll –> PC00_M40_CALC

Ur’s

Mohan