ESIC is deducting whose salary is above 10000

[Former Member]

Hi Expert,

I have a query.

For some employees salary was revised and after revision, their salary slab went above 10000 and their esic should not be deducted, but the system is deducting esic.

And when I run payroll for the month sept. esic is deducting and for the month oct it is not deducting.

The reason was as per esic slab is Apr-Sept and Oct-Mar

if an employee falls under esic even his/her salary increases above 10000 the system continues to deduct upto the slab and automatically stops after the slab.

Is there any settings by that whenever emp. salary changes and he cross the limit esic should not be deducted.

Please help me to solve this issue.

Regards,

R. Arokia Merlin

[Former Member]

Hi.. please do not change the constant. it would affect the other employees. Also, it is better that you advice the employees on the statuatory rules. All these information are subject to audit controls and it would not present a good report if audited.

ESI deduction is based on the ESI cycle. Please check with your concerned authorities on the ESI cycles for the areas.

[Former Member]

Hi,

Ok I will not change the SAP settings.

Regards,

R. Arokia Merlin

[Former Member]

Hi

If u really want to stop deducting ESI you can delimit the ESI Date in IT 588

But its against the statutory norms

Thanks

Mahantesh

[sikindar_a]

check

the constant in V_T511P ESILT once

[Former Member]

SAP is functioning as per statutory norms. Why do you want to change it?

[Former Member]

Hi,

When the employees salary crosses the esic limit, the employees are asking the hr dept. why my esic is being deducted.

So the end user asked me to solve this query.

And I identified that as per statutory norms. It will automatically deduct for 6 months.

Say If an employee's salary increases in the month of may that means for the remaining period his esic will be deducted.

And the employees are not accepting this.

That is why i want to change it.

Regards,

R. Arokia Merlin

[former_member214675]

Hi,

U have to maaintain ESI eligiblity limit as 10,000.The path is

Payroll india->Statutory Social Contribution->Employees' State Insurance->Employees' State Insurance

where u can maintain the ESI limit .

Regards,

Prince Elvis