Employee State insurance Rate Change
- With effect from 1st July 2019, the ESI rates have been reduced to 4% from the earlier 6.5%. (Employer contribution from 4.75% to 3.25% & Employee contribution from 1.75% to 0.75%)
- To give effect to this change and the corresponding impact on the CTC / Salary breakup, please click on 'Update Salary breakup' in the next screen for the employees who are in the ESI bracket.
- The system will automatically update the breakup based on how you had originally configured ESI employer contribution-whether a part of CTC or not.
Payroll should be processed for ESI in the month of June 2019.
- On clicking “Run Payroll”, a screen will appear (for the first time) as under. Only ESI covered Employees will be listed there.
Note: If any Employee has full month LoP, then increment screen to be used update the new ESI Rates)
- User has to click on “Update Salary breakup” in the screen to give effect to ESI rate change and the corresponding impact on the CTC / Salary Break Up.
- The system will automatically update the breakup based on how you had originally configured ESI employer contribution, whether as part of CTC or not.
- This break up has been built on the lines of Increment module specification.
- All the updated ESI Employees will be available at
- If user wants to unlock the payroll month, user must flush the increment as mentioned above.
- If any Employee has increment, flush the increment for that Employee and use the increment screen. ESI rate change will be handled in increment.
- If increment was done before run Payroll, such Employees will not appear in the update Salary breakup screen.
- The Update Salary break up screen will not appear if Special Allowance is not mapped. Such Companies shall handle the same through increment screen.
- In case of re-run of Payroll Process and user wants to rerun the breakup for ESI Employees, use the following url (Paydata for Jul-19 must be deleted)
- All states have been updated with the new ESI Rates
- Any new Employees created with July Payroll month will have new rates calculated at the Employee Master itself.
- For any clarification please contact the Support team – 8047107070 – IVR 2.