I need your support for PF & ESIC deduction clarification:
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.