8/18/2019 Pension Basis More Than 15K - 1.16% to Govt Contribution
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SAP Note
Header Data
Symptom
If an employee is drawing a salary of more than 15,000 INR per month and is an active member of the employees provident fund (EPF), then thegovernment will not contribute to that person’s pension kitty from 1 September 2014. The government ’s contribution will have to be made by theemployee for income above 15000 INR.
i.e., in case of Pension basis more than 15K, for basis above 15K employee has to contribute additionally 1.16 % which used to be contributed byGovt. The employee PF part will be reduced by the same amount.
For example, Let us consider an employee's monthly salary is 25K and his pension basis is also 25K, then for the amount more than 15K which is
10K, 1.16% of that amount i.e., 116 INR will be contributed towards the Govt Pension Contribution. The same amount will get deducted from theemployee's PF amount.
Other Terms
Employee PF, Govt Contribution towards Pension, Pension basis, V_T7INF1, V_T7INF3, INEPF
Reason and Prerequisites
Legal Change
Solution
The changes described in this SAP Note will be included in an HR Support Package, as indicated in the item "Reference to Support Packages".
The Support Package includes the following objects:
l New wagetypes /3FM - Govt Pension Basis, /3FN - Govt Pension Contribution and their relevant carryforward( /ZFM and /ZFN) and broughtforward ( /AFM and /AFN) wagetypes
l Inclusion of new field to hold the wagetype related to Govt Pension contribution in view V_T7INF1
l Inclusion of new field to hold the Govt Pension Contribution percentage in view V_T7INF3
l Changes in INEPF Payroll Function for the calcualtion of Govt Pension Basis and Govt Pension Contribution
l Inclusion of new field to hold Govt Pension contribution wagetype and percentage in EPF Cluster(PC2_IN07)
As general rule, SAP recommends that you install a solution by applying a Support Package.
Note: Documentation, Transactions and Customizing activities are only delivered via Support Package.
Sampe Configurations for the views V_T7INF1 and V_T7INF3 are as follows
V_T7INF1
In the above configuration /3FN is the SAP delivered wagetype for EPGCR WT, however customers can have their custom wagetypes maintainedas well.
V_T7INF3
In the above configuration maintaining the Govt Pen Contribution percentage should be done only from 1 September 2014 i.e., only from
2117876 - Pension basis more than 15K - 1.16% to Govt contribution
Version 1 Validity: 14.01.2015 - active Language English
Released On 15.01.2015 09:26:35
Release Status Released for Customer
Component PY-IN India
Priority Correction with medium priorityCategory Legal change
Trust Trust Name Trust Type EEPFC WT EEVPF WT ERPFC WT ERPNC WT EDLIC WT EDLIA WT PFADM WT EPGCR WT
RPF1 RPFC Trust RPFC /3F1 /3F2 /3F3 /3F4 /3F7 /3F8 /3F9 /3FN
Ctype End Date Start DateEe PF
Contribution
Er PF
Contr
Er Pension
Contribution Pfadm
EDLI
Contribution
EDLIAdmin
Charges
PF %
ofinteres
EEVPF
Limit
Govt Pen
Contribution
PF
EligiblePay
1 31.12.9999 01.09.2014 12 12 8.33 0.65 0.5 0.01 12 0 1.16 15,000
8/18/2019 Pension Basis More Than 15K - 1.16% to Govt Contribution
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01.09.2014 the value should be maintained in Govt Pen contribution field.
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Validity
Support Packages & Patches
Software Component From Rel. To Rel. And Subsequent
SAP_HRCIN 600 600
604 604
608 608
Support Packages
Software Component Release Support Package
SAP_HRCIN 600 SAPK-600B8INSAPHRCIN
604 SAPK-60484INSAPHRCIN
608 SAPK-60812INSAPHRCIN