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ESIC deduction on LOP case

Former Member
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Dear Friends

Employee is paid the full month salary in the month of April and May, ESI is deducted on this amount as expected. Now in the month of June, he is having 6 days LOP from 31st May to 7th June ,total 6 working days.

Now the system is recovering the amount for LOP days......like Basic Arrear with -ve amount etc. Now ESI is calculating on only current month earnings and it is not considering negative arrear amount for ESI calculation.

Ex:

Basic Salary 1,610.00

Executive Allowance 3,486.03

Basic- Arr 67.74-

Executive Allowance-Arr 146.68-

For ESI calculation system considering 1610+3486.03 =5096.03, same value is in RT /112 and /3EA.

This is standard functionality but I need to deduct on total gross earnings....

like 1610+3486.03-67.74-146.68 =4881.61.

Please help me how can I achieve this.

Mohan

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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Hi,

We have newly installed SAP HR module for our company.

I would like to know how is the ESI deduction on LOP of previous month recovered in current month?

Quite surprisingly, the negative arrears are recovered in PF and not in ESI.

Would appreciate if any one helps on this.

Regards,

Lourdes

Former Member
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Hi Mohan

The same issue i have solved. Pl give your business id.

regards

TNC

Former Member
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Please check my b'card for my Id....

Better you can reply to this thread ..so that everybody will know the solution.....might be some of our friends also facing same problem...

Mohan

Former Member
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Hi,

can you please send the solution to saphcmatelgi

thank you

Former Member
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Hi Cheran,

Request you to kindly provide the solution in the forum since others are also facing the same issue and it would be a lot easier for us to get the solution from here.

thanks in advance,

Ayyaps

sikindar_a
Active Contributor
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yes Cheran

we are looking for the same

thanks Mohan and ayyapa kumar for your insights

Former Member
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Hi Sikinder

Regarding ESI deduction on LOP Case

Pl modify the following as:

Rule In43 : line no. 50 /3EA * ELIMI * ADDWTD/AEAINESR /AEA

Rule in44 : line no. 30 (add) /551 ELIMI * ADDWTi/112

line no. 140 /AEA * ELIMI * ADDWTI/ZEA

Regards

TNC

Former Member
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Hi, TNC

Can you describe in detail .

You mean to say we just have to add WT /112 to the /551 WT in rule IN44, right.

Rest all is already in the Rule.

Pls let us knw

Thanks

Hemant V. Mahale

Former Member
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Hi TNC,

Can you please forward the details on the above subject which you have solved. Do it really calculates on the actual earnings for the month which includes current month salary less LOP (Negative arrears).

Kindly reply as we also have the same problem and our employees are suffering.

Regards

Trupti

Former Member
0 Kudos

any solution

same issue

Former Member
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Hi,

negative arrears are not considered in case of ESI deduction.

For a case of a salary change, all postive arrears is brought forwardto current period and ESI computed(taking arrears into consideration) ifthe employee is in the esiable period.

All negative negative arrears due to salary change is brought forwardto current period and ESI computed(without taking arrears into

consideration) if the employee is in the esiable period.

Regards,

Ayyaps

sikindar_a
Active Contributor
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iam not sure

Check CC 12 for that arrear wage type and Check

Former Member
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Thanks Sikindar for your reply......

I have tried this but it is not working......is there any possibility ... how can I achieve this..

Mohan