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Dokumentation

VV_T511K_ESICN - Maintain Constant to handle ESI contribution for F&F of terminated employee

In this customizing activity, you can maintain the value of the ESI Contribution(ESICN) payroll constant. This constant holds the value based on which the system decides whether the employee is eligible for the ESI (Employees’ State Insurance) contribution or not, when the employee is terminated in the first month of the contribution block (April or October).

1. Enter one of the below two values in the Value field for the payroll constant.
1. 0 – When the employee is terminated in the first month (April or October) of the contribution block, and the payroll is executed in any of the subsequent month for the final settlement that needs to be paid to the employee, there will be no ESI contribution, even if the employee is eligible as per the nominal basis salary of the employee. However, if payroll is run in the same month i.e. April or October, in which the employee was terminated, the ESI contribution was done based on the eligibility of the employee’s nominal basis salary.
2. 1 – When the employee is terminated in the first month (April or October) of the contribution block, and the payroll is executed in either the same month or any of the subsequent month for the final settlement that needs to be paid to the employee, the ESI contribution will be done if the employee is eligible based on the nominal basis salary.
2. Save your entry.