How to override ESI and LWF contributions for an exiting employee in Full & Final (F & F)

FnF or Full and Final Settlement is the process followed by an employer when an employee resigns or is terminated from a company. During this process, the employee is paid for their last working month, along with any additional earnings or deductions. This procedure is called the Final Settlement of the employee. However, during this settlement, there might be some value changes required for the statutory contributions due to the number of working days or formula calculations. Keka allows you to override contribution amounts like ESI and LWF during the FnF process to ensure the settlement amount is accurate.

To override any statutory (ESI/PF/LWF) component for an existing employee in F&F, navigate to Org (1)

Select the Exits option (2), then navigate to the Exit Process tab (3) and locate the Exits in Progress section (4). Find the employee you want to change the values for and under the Actions column, click on the Manage.

In the subsequent window, click on the Finances tab, then choose the option for Review & Finalise.

On the left side of the window, you will see the Others tab, where you can access the Contribution Overrides section.

Under Action in contribution overrides, click on Pencil Icon to override the ESI component.

Employee Profile Finances

Click on the Override system calculated value/amount in the ESI override window. After filling in the overridden amount for both Employee and Employer Share, and adding a Comment regarding the override, click on Save.

Similarly, to override the LWF values for the exiting employee, click on the Pencil Icon.

Click on the Override system calculated value/amount option in the LWF override window, After filling in the overridden amount for both Employee and Employer Share, and adding a Comment regarding the override, click on Save.

You will now be able to edit ESI and LWF contributions for the existing employee during the F&F process. If you have any further questions, reach out to us and we will be glad to help you!