Hi Sumana,
As per ESIC act 1948
The employees who gross salary less than or equal to Rs.15000/- per month eligible to deduct the ESIC .
Employee deduction =1.75% of gross monthly salary
Employer deduction =4.75% of gross monthly salary
Total deduction =6.50% of gross monthly salary
ESIC has two cycle
1) April to September
2) October to March
Suppose employee monthly salary is Rs.10,000/- for the month of (April or October) the ESIC deduction happen. Due to increase salary for in same month (April or October), new salary is Rs. 16,000/- or more per month, ESIC deduction happen till the cycle completed i.e. deduction will happen till up-to September / March
- 1. Employee joins a company in January & his salary is 10000. ( he is eligible for ESI)- Yes eligible for ESIC deduction
He was promoted in June and his new salary is 20000, still he is eligible for ESI?.- Yes, Employee is eligable till September
Now deduction happen on Rs. 20000
How to check this. And if new salary to be considered hot migrate to PF deductions.- Check in result table
Tcode- pc_payresuly
2. What happens when employee takes leaves for 10 days and we run retro pay for the next month how it will impact?
- Ex. Jan Salary for 15 days is 5000 and we want to pay along with Feb salary i.e. is 10000 (total 15000)
How it calculates.
Feb salary = Rs.5000+ 10000
Total Feb salary = Rs. 15000
ESIC employee deduction = Rs. 15000* 1.75%
ESIC employer deduction = Rs. 15000* 4.75%
3. All ESI technical Wage types including retro- How to check
Check RT Table
Tcode- PC_PAYRESULT
Check RT table.
Thank you,