ESI Contribution is getting Deducted for Non Eligible Employees If Payroll is Suspended in ESI Contribution Period

(Doc ID 2207909.1)

Last updated on DECEMBER 05, 2016

Applies to:

Oracle HRMS (India) - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, India Payroll

ESI contribution is getting deducted for non eligible employees If Payroll is Suspended in ESI Contribution Period
(i.e. If the employee payroll is suspended in the ESI Salary contribution period April/October, and re active in next month such scenarios the ESI contribution is deducted)

ESI Contribution should not deduct for the Employee who is not Eligible


Issue Replication Steps

1. Hire an employee effective from 01-Apr with basic as 40,000.00

2. Process April, May, June, July, August and September payrolls. ESI is not calculated as the employee is not eligible.

3. Effective from 01-Oct, update the Employee's Assignment Status to 'Suspended'.

4. Process October payroll. Payroll is skipped for the employee.

5. Effective from 01-Nov, update the Employee's Assignment Status to 'Active Assignment'.

6. Process November payroll. ESI is deducted for the employee even employee is not eligible.


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