Provident Fund & ESIC Deduction in ERPNext calculation not up to the mark

Dear All,

I need your support for PF & ESIC deduction clarification:

Current process:-
According to rule Indian govt rule 12% PF will be calculate on the basis of basic salary & .75% will deducted will be calculated as gross salary which is less 21000.
Currently its perfectly calculate when there is no leave without pay.

Problem Statement:- We facing the challenge when any Leave without pay is present then calculation is not up to the marks & its lead the discrepancy in Salary of employee.
In a month of Sept 2021, employee salary slips hold below records:
Working days - 25
LWP - 5
Payment days - 25
Gross Salary:- Monthly-20700 & According Pay days its correctly calculate as 17250.
Basic salary: Monthly-10350 & According Pay days its correctly calculate as 8625.
PF: 1242 (According to pay days(25) its should 1035 but ERP calculated as 862.5 of basic salary.
ESI: 148.5 (According to pay days(25) its should 129.37 but ERP calculated as 125 of Gross salary.

**But PF Is coming 862.5 but should be 1035, system don’t take it. **

**Same issue in ESI is coming 125 but should be 129.37, system don’t take it. **

Please provide help to resolve the issue.

1 Like

If just in case you haven’t found the solution yet, please see below
Untick “Depends on Payment days” in the salary component for PF and ESI.
As PF and ESI are getting calculated on Basic and basic is already giving you the correct value based on payment days so no need for these other components to depend on payment days.

Hi keTaki,

Thanks for your feedback but its only effective for PF and solve the problem but not effective for ESI. If you have any other point for ESI then please help us to resolve this issue on priority.

@ Frappe Team, Please help us to resolve the issue.

As far as I know, the same solution should work for ESI too.
Could you please let me know what formula is being used to calculate ESI?
It should be calculated in the below way:
17250 * 0.75 /100 = 129.37
If possible mention details of ESI components like type, condition, and formula and what all checkboxes are selected.

Hi KeTaki,

Now issue has been resolved and on the basis of change in formula and condition. Thanks a lot for support.

1 Like