Employee State Insurance (ESIC)

The Employees' State Insurance scheme (ESI) is a mandatory social security scheme under the ESI Act, 1948. India Payroll automates ESI contribution calculation and injection into Salary Slips.

1. How to Enable

1. Go to Payroll Settings → India Payroll tab.
2. Check Enable ESIC Deduction.
3. Optionally enter your ESIC Registration Number (appears on the ESIC Register report).
4. Save.

2. How It Works

The hook (apply_esi) runs on Salary Slip.before_save:

Salary Slip (before_save)
    │
    ├─ enable_esic in Payroll Settings? → NO → skip
    ├─ salary_structure set? → NO → skip
    │
    ├─ is_person_with_disability (Employee)?
    │       YES → wage_ceiling = ₹25,000
    │       NO  → wage_ceiling = ₹21,000
    │
    ├─ gross_pay > wage_ceiling? → YES → remove any ESI row, skip
    │
    └─ esi = gross_pay × 4%
         inject / replace "Employee State Insurance" deduction row
         recalculate total_deduction, net_pay

The single contribution row covers both shares:

Note: The employer's 3.25% is shown as a single line on the slip for transparency. It is part of the CTC and not a separate payable deduction from the employee's perspective.

3. Wage Ceiling

The PwD status is read from the is_person_with_disability checkbox on the Employee master.

• Employees at or below the ceiling are covered (ESI row injected).
• Employees above the ceiling are not covered (ESI row removed if previously present).

4. Persons with Disability

To apply the higher ₹25,000 ceiling for a PwD employee:

1. Open the Employee document.
2. Check Is Person with Disability.

The hook reads this field on every slip save, so changing the flag mid-year takes effect on the next payroll run.

5. ESIC Card Number

The ESIC Card No (IP Number) field is a standard Frappe HR field on the Employee master. It is displayed in the ESIC Register report and should be filled for all covered employees for the report to be complete.