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Author's profile photo Kavali V Leelamohanrao

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:

1 - S1.png

IT 0014 Overtime wage type:

1 - S2.png

IT 0588 Sub type –> 0001 ESI

1 - S3.png

V_512W_D Maintaining cumulation class to each wage type

1 - S4.png

1 - S5.png

1 - S6.png

Now run payroll –> PC00_M40_CALC

1 - S.png

Ur’s

Mohan

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      Author's profile photo Former Member
      Former Member

      Very Useful Info Mohan. ℹ

      Keep posting more.

      Cheers 😉

      Pradyp