ESI deduction prob

Question

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

Answer 1

1. Maintain ESI basis Limit in the table VV_511P_B_ESILT_AL0  as it is INR 15,000 from 01.05.2010
2. V_7IN0P_ESI -personal area nd sub areas groupings
3. Maintain the tables V_T7INE1 and V_T7INE3
The process:
Cumulation class 12 for ESI basis, all WT under this will be sotered in WT /112 (on this ESI will be calculated as per % maintained in the table V_T7INE3)
Cumulating class 13 OR Processing class 72 (any one but not both) , all WT under this will be sotered to WT /113 which will check the limit in the table VV_511P_B_ESILT_AL0
If Limit is <= 15,000 (Compared /113 amount with table entiry)  and then ESI will be calculated based on the amount in WT /112.
ESI WT's are /3E1-  Ee ESI contribution and  /3E2- ER ESI contribution
For example: /113 = 14,000,
                      /112 = 10,000, Here the limit is below INR 15, 000 so the calculation is as below:
Then /3E1  = 1.75 % on 10,000 = INR  175
         /3E2 =  4.75 % on 10,000 = INR  475
Please check and let me know.
Thanks
Cheera
Edited by: sreecheera on Sep 2, 2011 11:56 AM