ESI deductions for Payment over 15000

[Former Member]

Dear experts,

I want the system to treat the the employees whose salary exceeds Rs.15000 as Rs.15000 and still calculate the ESI deduction for them.

Speak of which, deduction has to be on Rs.15000 even if final payment exceeds Rs.15000.

Is there any possible way to achieve that?

Thank you.

[jayantvenkata]

Hello

Here is the difference between the 2 wagetypes

ESI Basis Wage Type (/112) - This is the actual ESI basis. This

includes loss of pay and overtime. This wage type is calculated by the

Gross input and storage Rule (X023). Based on the specification of

Processing Class 20 and if the Cumulation Class 12 of the wage type is

selected, the Gross input and storage Rule (X023) includes the value of

the wage type in the ESI Basis Wage Type (/112).

ESI Basis Nominal Wage Type (/113) - This wage type does not

take into account loss of pay or overtime. Eligibility for ESI is

calculated on the amount in this wage type. This wage type is calculated

by the Nominal Cumulations Rule (IN72). Based on the specification of

processing Class 72, the Nominal Cumulations Rule (IN72) includes the

value of the wage type in the ESI Basis Nominal Wage Type (/113).

Thanks and Kind Regards

Ramana

[Former Member]

Dear experts,

I want to know what benefit i will get from  ESIC as my salary is above 17000 from april 2013

Before that it was less than 15000 so ESI amount is deducted from my salary.

I need maternity benefit so what should i do for that?

Is there any possible way to achieve that?

Thank you.

[jayantvenkata]

Hello

ESI deduction is done based on the nominal pay as calculated.

nominal_pay = it-betrg * ( vdays / vksoll )

/113 is formed up in the rule in72 and it depends upon the processing class 72. The deduction for ESI takes place on actual pay but the eligibility is checked based on nominal pay based on the limit of Rs.15000 .If the nominal pay is more than this,no ESI will be calculated.

This is the standard behavior of the system.

Thanks and Kind Regards

Ramana

[Former Member]

U mean If the Employee salary is More than 15000, ESI should calculate on 15000 only right

Firstly, If the employee salary is 15000 ESI will not calculate.Then why do u want to calculate ESI ifl his salary is 15000

Best Regards,

[Former Member]

Hi rkvarma,

That's correct. The employee keeps contributing during the contributory period of six months. However, due to some other payments, his final payment exceeds 15000 and he is disqualified from ESI benefits.

So now I want the system to still calculate ESI for him. If 15000 does not work, maybe 14999 will do?

Can you suggest me with some hints?

Regards,

[Former Member]

Hi Simonq,

the wage types which are getting added to total gross salary,,for those wage types uncheck the cumulation class of ESI,,your issue will be resolved.

these wage types are having the ESI checked. go to table v_512w_D and uncheck for those wage types.

regards,

mohammed

[Former Member]

Hi mohammed & Jayanti,

I see ESI Basis and ESI Basis Nominal. Both of them are uncheked. What is the difference bw these two?

And could you please provide info on where to run the report for ESI contributed?