ESI Contribution Confusion: Why Is the Portal Showing a Different Amount?

As per employees' ESI contribution, we will calculate 1.75%. Yesterday, I submitted the ESI online. 1.75% amounts to 24,576.72 for total wages of 1,404,384. However, the online portal is calculating 24,642.00 (an additional Rs 65.28). Can anyone explain this discrepancy?

You are calculating 1.75% on the total wages, while the portal calculates 1.75% on individual wages. The difference could be due to rounded-off figures. Each .01 figure will be rounded off to the next rupee.

Regards,
Jitender

Use the formula =ROUND("GMS Salary" * 1.75%, 0) to calculate each employee's ESIC amount. Then, sum it up.

ESI introduced the concept of rounding up a few years ago. Any contribution, either Employer or Employee contribution, that is greater than a rupee is rounded up to the next higher rupee. Even if it is 5 paise above a rupee, it is rounded up to the next higher rupee.

Try the formula =ROUNDUP("Gross salary"*1.75%, 0) for employee contribution and change it to 4.75% for employer contribution; you will arrive at the figure in the ESI portal. Please note that you have to compute this way for each employee.

Regards