ESIC wrongly deducted

[Former Member]

Hi,

For some employees in a payroll area, the ESI is being deducting even though their salary is more than the ESI coverage ceiling i.e. 10,000

Please help.

Regards,

Ally

[former_member583520 · Accepted solution]

HI,

For this you need to check the limit amount in the ESI configuration part.

Then you can check all the groupings.

Thanks and Reards,

Revathi.

[Former Member]

Hi,

1.) Additional to the 2 ESI eligibility period, check the data in IT0588

2.) Check the Payroll Log and look for the Function INESI and check the flow.

3.) Also look for the Technical WT's /3E1,/3E3 and ESIC basis WT in RT

Regards

Hemant V. Mahale

[Former Member]

Hie Hemant,

Thanks for your response.

I checked the RT and found that only for those pernr for whom ESIC has been deducted the wage

types /3e1 & /3e2 has been generated.

The PSA groupings for all are the same.

[Former Member]

Hi,

In the month of Oct2008 as per eligibility he would be an ESIC member , ESIC Gross below 10000

Now tat if there is any revision in his salary also , his new eligibility will only be calculated in Apr2009

Regards

Hemant

[Former Member]

Hi Ally,

Please note the point that ESIC deduction happens as per the contributinn period

There are two ESI contribution periods:

a) April 1 - September 30

b) October 1 - March 31

If ESIC has been deducted in the first month of the contribution period i.e. April and October......the Esic Deduction will continu for the rest of the contribution period......even if in the mid of the contribution period...the employees get increment and their salary crosses ESIC limit of Rs.10000.....

So please check the above point for the employees for whom the ESIC is getting deducted even after the increase......

And As you are pointing out ....only for some employees it is happening....i assume for the employees for whom the ESIC is not getting deducted ......there is a chance that the ESIC infotype would be delimited.....

Regards

Srijit

[SAPNG]

Has the salary been increased after the employee has contributed towards ESI once in the contribution period? If this is the case then the employee shall continue to contribute towards the same.

[Former Member]

Hi Nitin,

There was an increment in salary w.r.f Jan 09 for almost 30 employees.

However, ESIC is gettin deducted for some employees only in this case..

Can you throw more light on this?

Regards,

Ally

[Former Member]

Hi Alley,

there are two things in ESI, Contribution period & Benifit period

Contribution period are 1st Apr to 30th Sep & 1st Oct to 31st March.

If the employee ESI deducted in any of the contribution period once, it will keep deduct the ESI upto the completion of Contribution period though his salary is more than 10k.

In your case, the same is happening. Because The amount started dedcting from 1st Oct and they got increment in Jan 09. So the ESI will deduct upto March

Kumar

[Former Member]

Thanks Kumar,

If 10 employees (who were below the ESIC ceiling limit) have received an increment in Jan 09, then the ESIC would be deducted for all 10 right as per the contribution period ?

However, in my case the ESIC is getting deducted for only 5 employees. What bout the remaining 5 who also fall under the same category?

[Former Member]

Any updates please??

[Former Member]

Good mornin!!!

Awaitin your valuable response...

[sikindar_a]

10 employees (who were below the ESIC ceiling limit) have received an increment in Jan 09, then the ESIC would be deducted for all 10 right as per the contribution period ?

However, in my case the ESIC is getting deducted for only 5 employees. What bout the remaining 5 who also fall under the same category?

Does the Rest of the Employess belong to Same PSA Groupings Pls let us know ............................

Check V_T7INOP_ESI once

V_T7INE1 once

Edited by: Sikindar on Feb 18, 2009 11:08 AM

[Former Member]

Hi Sikindar,

All the employees belong to the same PSA grouping

[sikindar_a]

Check the ESI Eligibility Limit ESILT in V_T511P how much u have given the eligibility limit

revert back if any issues are there

Edited by: Sikindar on Feb 18, 2009 11:24 AM

[Former Member]

It is 10000

[sikindar_a]

Check the ESI PSA groupings