FAQ Manual LWF Amount Not Calculating in Payroll

Created by Srikanth U S, Modified on Wed, 21 Jan at 3:27 PM by Srikanth U S

Purpose

This FAQ explains the possible reasons why LWF is not calculating for an employee and provides a systematic checklist to identify and resolve the issue.


FAQ 1: Why is LWF not calculating for an employee?

If PT is not calculating in payroll, validate the following steps in sequence:


Step 1: Verify LWF Gross Calculation in Payroll Summary

  1. Open Employee Payroll Summary.

  2. From the dropdown, select LWF Amount.

  3. Review the LWF Gross Details:

    • Confirm which salary headers are considered for LWF gross.

    • Ensure the Total LWF Gross Amount is correct.

  4. Check the Comments / Remarks section:

    • The system displays explanatory messages if LWF is not deducted (for example, below slab limit, PT not applicable, configuration issues).


Step 2: Validate Employee Working Location

  1. Check whether the working location is correctly mapped to the employee.

  2. LWF is calculated strictly based on the location mapped to the employee.


Step 3: Check LWF Applicability in Statutory Information

  1. Navigate to Employee Statutory Information.

  2. Verify the  LWF applicability.


Step 4: Verify LWF Header Mapping in Salary Structure

  1. Open the Employee Salary Structure.

  2. Confirm that the LWF  header is mapped correctly.


Step 5: Check State wise information in the under complience Statutory Information

  1. In Compliance Statutory Information, check the state wise slab and applicablity


Step 6: Review Contract-Level Salary Overrides

  1. Check if any Contract-Level Salary Override has been applied.

  2. Overrides may alter LWF-applicable gross or deduction behavior.


Step 7: Verify Statutory Location at Contract Level (HR Options)

  1. Open the Contract → HR Options section.

  2. Check whether a Statutory Location is mapped at the contract level.

  3. If a statutory location is mapped:

    • LWF will be calculated based on the contract-level location,

    • Not the employee’s default location.


Summary Checklist

Check AreaValidation Point
Payroll SummaryLWF gross and comments verified
Employee LocationCorrect working location mapped
Statutory InfoLWF applicable for selected state
Salary StructureLWF header mapped
Statutory FlagsLWF not disabled
Contract OverrideNo conflicting salary override
Contract HR OptionsCorrect statutory location applied

If all the above checks are correctly configured and LWF is still not calculating, it is recommended to review LWF slab configuration and effective dates at the system level.

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