Payroll FAQs

How to include bonus/one time payment for ESI calculation?

The Keka system calculates the ESI contribution amount for eligible employees based on the ESIC Act. ESI is calculated on the earned gross of the employee, but it does not include any one-time or bonus payments for default ESI calculations. However, you do have an option in Keka to enable the inclusion of one-time payments in the earned gross, which will increase the ESI contribution amount for both the employee and the employer.




Navigate to Payroll (1) and then go to Settings (2).


Select the Pay Groups (3) tab and locate the pay group (If you have multiple pay groups configured) for which you want to make this change. Click on the Configure (4) icon. 



Now select the Contributions (1) tab in the next window and click on the three dots. From the list of options, select Update ESI Settings (2).




In the Update ESI Settings window, select the checkboxes Include bonuses and one-time payments in gross for ESI eligibility calculation and Include bonuses and one-time payments in gross for ESI contribution calculations. 


After you've selected the checkboxes, click Update to save these settings.  




With these settings, any bonuses or one-time payments that your employees receive will be considered to determine if they are eligible for ESI and their ESI contribution calculation.