What is ESI (ESIC) in ERPNext?
- ESI (ESIC) in ERPNext
- ERPNext automates Employee State Insurance (ESI) contributions for eligible employees (gross salary ≤ ₹21,000/month) as per the ESI Act, 1948.
Configuring ESI
Add salary components for "ESI Employee Contribution" (0.75% of gross) and "ESI Employer Contribution" (3.25% of gross). Use conditions in the formula to apply ESI only when the gross salary is within the ESI limit (₹21,000). ERPNext calculates each month automatically.
ESI Compliance
The Payroll Entry generates the total ESI liability for the period. ERPNext's HR reports show employee-wise ESI contributions. Use this data to prepare the ESI challan for monthly payment and the ESI returns filed through the ESIC portal.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.
