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Former Member
Sep 02, 2011 at 05:10 AM

ESI deduction prob


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.


Shree NP