Introduction

The Employees' State Insurance Corporation (ESIC) scheme is a mandatory social security initiative governed by the Government of India.

It provides health insurance and various benefits to employees whose earnings fall within a specific salary bracket.

To ensure accurate deductions and regulatory compliance, organisations using uKnowva HRMS can automate ESIC calculations using the ESIC Calculator Plugin.

This plugin allows administrators to configure all ESIC-related rules, including threshold amounts, contribution percentages, salary component mappings, and employee exclusions.

In this article, you’ll learn how to access, configure, and activate the ESIC plugin in uKnowva HRMS as per government norms.

Step 1: Access the ESIC Calculator Plugin

To begin configuring ESIC, first navigate to your uKnowva instance. From the top-right corner, click on your profile icon to reveal a list of options.

Select uKnowva Configuration, which will open the backend configuration panel.

On the left-hand menu, choose Plugin Manager.

This area contains a comprehensive list of all plugins installed in your instance. Use the search bar or scroll through the list to locate the ESIC Calculator plugin.

Make sure that it is both installed and published. Once found, click on the plugin name to launch the configuration pop-up.

Step 2: Configure ESIC Parameters and Thresholds

Inside the configuration pop-up, the first setting you’ll need to define is the field that stores the ESIC number in the employee profile.

Select this from the drop-down so that uKnowva HRMS know where to pull the ESIC number for each employee.

Next, in the "Calculate ESIC on total of" field, specify the salary components on which ESIC will be calculated.

These could include Basic Pay, DA, or other fixed components, depending on your payroll structure.

The next critical configuration is the Threshold Amount. This is the maximum salary limit up to which ESIC is applicable.

As per the current ESIC rules, this threshold is set to ₹21,000 per month. Enter this value in the field labeled "Please enter the threshold amount – max amount on the basis of which ESIC will be calculated".

If an employee’s salary exceeds this threshold, ESIC contributions will not apply to them.

Proceed to define the percentage contribution for both employees and employers.

In the "Please enter the ESIC % contributed by employee" field, enter the statutory percentage, typically 0.75%.

Similarly, for "ESIC % contributed by employer", enter the employer’s share, generally 3.25%.

These values may be revised by the government, so ensure they are updated accordingly.

Step 3: Set Inclusion Rules

Next, determine if ESIC is already included in Gross. If you choose "Yes", you must specify under which salary component the ESIC amount is already included.

This ensures that the deduction does not double-count the ESIC value when generating payslips.

You can also define the exact Salary Components used to reflect ESIC contributions on the payslip.

Enter the salary component name where employee contribution should be shown, followed by the one where employer contribution will be reflected.

This setup ensures that payslips are clear, transparent, and compliant.

Step 4: Manage Inclusion and Exclusion Rules

You can further tailor ESIC applicability by defining user-based rules. Select specific User Groups to exclude from ESIC, such as consultants, interns, or high-salary employees.

If needed, individual Users can also be excluded manually. For advanced scenarios, the system also supports Custom Code Logic that allows developers to define dynamic exclusion criteria through scripts.

To ensure accuracy in payroll reporting, the plugin includes options to determine how ESIC should impact gross earnings and deductions.

You can choose whether to deduct ESIC from employee salary, and whether to add the employer’s contribution to gross earnings or gross deductions.

Similarly, you can define if the employee’s contribution should be included in gross deductions.

These options help tailor payslip visibility and align with your organisation’s payroll structure.

Once all necessary fields are configured as per your organisational policies and compliance rules, click on the Save button to apply the changes. If needed, use the Cancel button to discard unsaved updates.

Conclusion

That’s it!

You’ve now successfully configured the ESIC Calculator plugin in uKnowva HRMS.

By following this process, you ensure accurate ESIC deductions for eligible employees while complying with the latest government regulations.

The plugin gives you complete control over calculation logic, salary components, contribution rates, and user exclusions, making your payroll process both streamlined and compliant.

If you have any questions or need additional support, feel free to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..