Understanding Delivered ESI Deductions

This section discusses:

  • Delivered ESI deductions.

  • Process lists and sections.

  • Viewing delivered elements.

PeopleSoft delivers the following deductions to process ESI:

Name/Description

Unit

Rate

Base

%

Amount

ESI

Employee State Insurance (gc)

NA

NA

ESI GROSS WAGES

ESI VR PYE PCT

NA

ESI ER

Employee State Insurance Employer Contribution (gc)

NA

NA

ESI GROSS WAGES

ESI VR ER PCT

NA

In this table, the first column combines the name and description of the delivered deductions. A (gc) in the row indicates that the deduction has an associated generation control element. A (po) indicates a post-processing formula, and (pr) indicates a preprocessing formula. The other four columns indicate the deductions calculation rule (Amount, Base × %, and so on).

These deductions may need to be modified to meet particular business requirements:

  • ESI

    The ESI deduction has a calculation rule of base multiplied by percentage and is used to calculate the employee's contribution to ESI; the base is the accumulator ESI GROSS WAGES and the percentage is determined by the numeric variable ESI VR PYE PCT. The generation control element ESI GC ENROLL determines when the system processes this deduction. The deduction is made during the contribution period. If any employee crosses the limit (od Rs.7,500/-) during the contribution period, he continues to pay for the whole period.

  • ESI ER

    The ESI ER deduction has a calculation rule of base multiplied by percentage and is used to calculate the employer's contribution to ESI; the base is the accumulator ESI GROSS WAGES and the percentage is determined by the numeric variable ESI VR ER PCT. The generation control element ESI GC ENROLL determines when the system processes this deduction.

The ESI and ESI ER deductions are members of the ESI SE ALL process section.

The ESI SE ALL section is included in the IN PL PAY and IN PL PAY BON process lists.

PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for India. Instructions for running the query are provided in PeopleSoft Global Payroll.