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Jan 02, 2014 at 11:34 AM

LTA & Medical Eligibility Amounts (Payroll India)



I need to configure LTA and Medical payments with eligibility for one of our Indian clients. We have already configured dummy WTs 9LTA & 9MED for indirectly valuating annual values based on Basic Pay (9MED is constant INR 15000 p.a. and 9LTA = one month Basic = 9BAS/12 = 1BAS).

We have created payment WTs for LTA and MED (1LTA & 1MED). Now, let us consider the case of an employee joining in mid-year (say 1st October 2013) with Annual Basic (9BAS) = INR 12,00,000. His Basic Pay p.m. (1BAS ) = 9BAS/12 = INR 1,00,000. 9LTA = 1 month Basic Pay = INR 1,00,000.

  1. But because 9LTA = 1 Lakh for the calendar year 2013 (i.e. period 01.01.2013-31.12.2013); eligibility should be prorated for the 3 remaining months.
  2. Secondly, if there is salary increment/change in December 2013 (say), the system should be able to take care of the new annual eligibility to calculate the real eligibility for October, November & separately for December 2013.
  3. Besides this, how can we stop the system from paying more than the actual eligibility.

I am planning to write a PCR to resolve these issues. I intend to calculate monthly value of annual LTA eligibility (9LTA) within my PCR during each payroll run by dividing 9LTA by 12 and accumulating the same in another actual eligibility WT 9LTR (say). Am I on the right track? Please provide your opinion. I feel this can be resolved using PCRs and no ABAP development is required.