# Employees State Insurance (ESI) ### Configuring ESI in Runtime HRMS Go to Setup > Statutory > ESI.

As shown in image above, click ‘Enable ESI Deduction’ checkbox to allow ESI deduction from employee salary. The rates of deduction can be modified as per changes in law. When changing the rates of deduction, make sure you select correct ‘Effective Date’ from when the change is applicable.

Go to second tab ‘Salary Components’. Select all those components where ESI is deductible. Usually ESI is not deductible on components which are of Reimbursement nature.

On the same page, click on ‘Locations Applicability’ tab to select locations where ESI is applicable.

In case you wish to disable ESI deduction for one or more employee as an exception, you can do so in employee profile. Open the employee record, go to Options tab.

Select ‘Do not deduct ESI’ and save to save the changes. #### Generating ESI Return ESI Returns can be generated from Reports > Statutory Reports > ESI Report

Select a period and click on ‘View Summary’ to display ESI contribution summary on screen.\ Click ‘Export to Excel’ to export the report in excel.\ Click ‘Export Return’ to export the ESI return for uploading on ESI Portal. ESI Return is an excel format supported by ESI portal.\ To generate report for only one location, select location in the location dropdown.