Is the ESIC Online System Miscalculating Your Contributions? Let's Discuss the Rounding Issue

Issue with ESIC Online Calculation

As per the ESIC rounded-off rule, the fractional part should be converted to the nearest rupee. However, I found an issue with the online ESIC software calculation. For example, if the ESIC wages amount is Rs. 1086/-, then 1.75% of this amount would be Rs. 19.005/-. In the ESIC Online system, it is calculated as Rs. 19/-, whereas per the rule, it should be Rs. 20/-.

Kindly comment.

Regards,
Sarwan

Dear Shravan, the system is always correct! It takes the rounded-off figure 20 when the figure is 19.5 or above. If the figure value is below 19.5, then it automatically rounds it down to 19. In your case, the value of 19.005 is too low to meet the condition above, which is why it rounded to 19.

I hope your doubt is clear now!

Thank you.

If an amount is 19.5, then it is considered as 20. However, in the above case, the amount is 19.005.

Regards,
Manoj Vaishy

Sorry for going through your thread very late. You have to round off your value to the "next" rupees and not the nearest rupees. There is a formula in Excel to do this!