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ESI deduction: automatic exclude should not happen in April or September Month Payroll

Jun 08, 2017 at 07:46 AM


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Former Member

Dear Gurus,

As we know, ESI deduction will be stopped automatically if an employee gross earning is more than the ESI limit (INR 21,000) in the month of April or September payroll run. My company wants to stop this automatic exclusion of ESI deduciton. It should be deducted based on the record validity date which is maintained in infotype 0588 under subtype 001.

Please give me some inputs how to accomplish this requirement?

With kind regards,

S. Alexander Julius

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1 Answer

Aman Tyagi
Jun 09, 2017 at 09:23 AM

Hi Alexander,

The requirement that you're asking for would require system modification at your end. Legally speaking, your requirement is not correct either. You can go into the function INESI and put the check for IT0588-subtype 0001 instead of the Nominal Pay check here:

if nominal_pay > esilt or nominal_pay EQ 0.

Please note that this would be legally WRONG! You should consult your Tax and Legal counsels on this matter before proceeding.

Best Regards,


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