Skip to Content
Former Member
May 04, 2009 at 03:33 AM

Retro ESI - LWP


Dear all experts,

We encountered an issue where system does not retro ESI if ESI amount is over contributed in previous month. System only retro ESI if 1. change of IT0588, 2. change of salary 3. ESI contribution ORT is less than ESI contribution in retro month.

Here is the case, in Jan the actual ESI basis was Rs8137.00. When comes to Feb, we were informed that employee took 1 month unpaid leave in Jan.

When run Jan payroll in Feb, system does not take the unpaid leave in Jan into ESI computation. Plus there wasn't any computation process to re-compute the actual ESI basis (/3EA).

Now, the employee had over contributed in Jan. By right, ESI contribution should be reduce due to 1 month unpaid leave. How can I resolve this issue and payback the over paid ESI contribution to employee? Should employee recover back the over paid ESI contribution via system or recover it from ESI authorities at the end of contribution period?


Wee San