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Former Member
May 21, 2010 at 09:56 AM

ESI Calculation if Base is Beyond Limit mid year

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Sorry. I was bit confused in putting my requirement in the earlier post.

We know that the limit for ESI now in 15,000.

Lets say an employee has ESI base of 12,000 in April'2010. Hence if we run the payroll in April'2010, ESI will be based on 12,000. Now lets say his ESI base becomes 14,000 in May'2010. Hence if we run his payroll in May'2010, ESI will be based on 14,000. Till now everything is correct.

Now let his ESI base become 17,000 in June'2010. Now this is out of limit. However if payroll is run for June' 2010, ESI gets deducted till September'2010. However while deducting, it considers this 17,000. Ideally it should consider 15,000, which is the upper limit.

How do I achieve this?