Salary payment for employees on Maternity group leave
If employee is on an approved Maternity group leave as covered by Maternity Benefits
Act - refer article for details on Maternity group leaves - and if the employee is covered under ESI then the salary for the duration of
leave is to be claimed from ESIC and will not be paid by the company. If the
employee is not covered under ESI then salary for the period when she is on Maternity
leave will be paid by the company.
This option is enabled only when
a) Maternity group leaves are enabled in Leave module of EazeWork HRMS, and
b) ESI is enabled and employees are mapped to ESI
When running payroll you will get a notification on Payroll Validation page as
shown below.
When you run payroll the salary which would be paid to this employee would be reduced by the number of days for which she is on any of the maternity group leaves. Calculation of the salary is explained below -
Example
Suppose we are running April 2019 payroll and employee is on approved Maternity Leave from 10-April for a period of 180 days till 6-Oct.
Suppose we are running April 2019 payroll and employee is on approved Maternity Leave from 10-April for a period of 180 days till 6-Oct.
In April payroll salary would be paid for 10 days : 1st to 10th April period
In May to September payroll no salary would be paid
In October payroll salary would be paid for 25 days : 7th to 31st October period
In May to September payroll no salary would be paid
In October payroll salary would be paid for 25 days : 7th to 31st October period
The basis of payment or deduction would be the actual number of days in the month.
April : 10 / 30 x (Wages)
October : 25 / 31 x (Wages)
April : 10 / 30 x (Wages)
October : 25 / 31 x (Wages)
Any LWP or other deductions will be handled as they are done normally but during the period employee is on Maternity leave there cannot be any LWP.
If any variable pay, adhoc payments or adhoc deductions are made then they would be done as normal.
There is another important parameter linked with maternity group leaves - "Statutory deductions to be done during Maternity Group leaves".
When this parameter is selected as Yes then
- PF / ESI employee and employer contributions will continue as normal
- Professional Tax and Labor Welfare Fund wages will include the wages earned during the period of maternity group leave
- While calculating Statutory Bonus the wages earned during the period of maternity group leave will be considered
- Working days in the month will include the days on which the employee is on maternity group leave
When this parameter is selected as No then
- PF / ESI employee and employer contributions will not be done for the period during which employee is on maternity group leave
- Professional Tax and Labor Welfare Fund wages will not include the wages earned during the period of maternity group leave
- While calculating Statutory Bonus the wages earned during the period of maternity group leave will not be considered
- Working days in the month will exclude the days on which the employee is on maternity group leave and these days will be shown as LWP days on salary slips and salary register
Note -
1. If the Maternity Leave is submitted and approved from a back date and employee has already been paid in payroll for that period then system will not recover the past payment which has already been made.
2. The period of maternity group leave is treated as working days if setup parameter "Statutory deductions during Maternity group leaves" is yes and then statutory deductions under PF, ESI, LWF for the duration during which employee is on maternity group leave will be done. If the setup parameter for statutory deductions is no then the period during which the employee is on maternity group leave will be treated as non working days. For calculation of Statutory Bonus and Professional Tax the calculation of wages earned during the period will include the leave days if the parameter is yes and will not be included if the parameter is no.
1. If the Maternity Leave is submitted and approved from a back date and employee has already been paid in payroll for that period then system will not recover the past payment which has already been made.
2. The period of maternity group leave is treated as working days if setup parameter "Statutory deductions during Maternity group leaves" is yes and then statutory deductions under PF, ESI, LWF for the duration during which employee is on maternity group leave will be done. If the setup parameter for statutory deductions is no then the period during which the employee is on maternity group leave will be treated as non working days. For calculation of Statutory Bonus and Professional Tax the calculation of wages earned during the period will include the leave days if the parameter is yes and will not be included if the parameter is no.
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