New labour Code - Basic and ESI calculations

Salary Structure – Header Applicability Configuration Steps

Step 1: Go to: Settings->Company Setup->Portal Settings->Common Settings->Salary Structure – Header Applicability Configuration

• Enable Basic should be Min 50% of Monthly CTC

• To validate Basic salary check and ESI calculations

Step 2: Configure BASIC = 50% of CTC

Select BASIC:

• Calculation Type → Percentage of CTC

• Percentage → 50

• Calculation Base for ESI → BASIC

• Under only Basic header enable Applicable for ESI

• Save

Step 3: Configure Employer ESI

Select ESI:

• Calculation Base → BASIC

• ESI % → As per rule (0.75% employee / 3.25% employer or as configured)

• Adjust Differential Amount Salary header as Other allowance to adjust remaining amount during offer or salary process if values are going beyond CTC.

• Save