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Former Member
Sep 02, 2011 at 05:10 AM

ESI deduction prob

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Hi Experts,

When employees are hired in mid of month or end of month with gross salary of 10000 to 15000, and they are eligible for ESI contribution, even then when running a that month payroll, the system is not deducting ESI for above said employees,

IT 588 has been maintained for them properly.

Gross Salary : 10000

DOJ : 22.08.2011

/112 ESI Basis: 3,225.81

/113 ESI Basis nominal : 5,296.61

Why these two wage types have different calculation? I know that /113 does not take into account loss of pay or overtime. pls let me know why it is considering the /113 amount when the deduction happens for ESI? I am unable to understand the calculation of /113 in case of loss of pay. In our system Min.Avg.Wage per day is defualt 26. Please help me to understand the calculation process of /113 and /112. pls guide me in this.

Thanks,

Shree NP