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Former Member

ESIC is deducting whose salary is above 10000

Hi Expert,

I have a query.

For some employees salary was revised and after revision, their salary slab went above 10000 and their esic should not be deducted, but the system is deducting esic.

And when I run payroll for the month sept. esic is deducting and for the month oct it is not deducting.

The reason was as per esic slab is Apr-Sept and Oct-Mar

if an employee falls under esic even his/her salary increases above 10000 the system continues to deduct upto the slab and automatically stops after the slab.

Is there any settings by that whenever emp. salary changes and he cross the limit esic should not be deducted.

Please help me to solve this issue.

Regards,

R. Arokia Merlin

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5 Answers

  • Oct 16, 2008 at 08:27 AM

    Hi,

    U have to maaintain ESI eligiblity limit as 10,000.The path is

    Payroll india->Statutory Social Contribution->Employees' State Insurance->Employees' State Insurance

    where u can maintain the ESI limit .

    Regards,

    Prince Elvis

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    Former Member
    Oct 20, 2008 at 09:21 AM

    SAP is functioning as per statutory norms. Why do you want to change it?

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    • Former Member

      Hi,

      When the employees salary crosses the esic limit, the employees are asking the hr dept. why my esic is being deducted.

      So the end user asked me to solve this query.

      And I identified that as per statutory norms. It will automatically deduct for 6 months.

      Say If an employee's salary increases in the month of may that means for the remaining period his esic will be deducted.

      And the employees are not accepting this.

      That is why i want to change it.

      Regards,

      R. Arokia Merlin

  • Oct 22, 2008 at 08:22 AM

    check

    the constant in V_T511P ESILT once

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    Former Member
    Oct 23, 2008 at 05:40 AM

    Hi

    If u really want to stop deducting ESI you can delimit the ESI Date in IT 588

    But its against the statutory norms

    Thanks

    Mahantesh

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    Former Member
    Oct 23, 2008 at 05:53 AM

    Hi.. please do not change the constant. it would affect the other employees. Also, it is better that you advice the employees on the statuatory rules. All these information are subject to audit controls and it would not present a good report if audited.

    ESI deduction is based on the ESI cycle. Please check with your concerned authorities on the ESI cycles for the areas.

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