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

Modified on Thu, 21 Mar at 1:41 PM




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)

Click on Exits (2), and select the  In Exit Process (3) tab. Find the employee you want to change the values for and under the Actions column, click on the Three Dots.

Click on Process & Settle (4) from the options in the dropdown.

In the Exit Process window that opens up, complete the first three steps, such as Exit Notice, Pending Activities, and Payables by clicking Next or Save and Continue till you reach the Dues & Overrides step.


Here, find the Contribution override section.

Under Action, click on Edit Icon to override the ESI component.


The option to edit will only be available if ESI and LWF are enabled for the particular employee. Go to the Employee Profile and go to Finances tab to see if these components are enabled. 


To learn how to enable/disable ESI and LWF for an employee click here


You will get the option to edit only when you have finalized all pending payrolls from the previous months.


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, from the Dues and Overrides stepagain click on the Edit 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!

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