EDLI ISSUE

[Former Member]

Hi expert,

I am facing an issue with the EDLI charges component in PF.

EDLI charges are deducting from actual basic rather than 6500 or basic whichever is less.

Kindly guide me how to change EDLI charges basis from actual basic to 6500 or basic whichever is less.

Thanks & Regards

Bindu Pathak

[venkateshorusu]

Can you check /3FL wage type in the result table based on the /3FL amount system will calculate EDLI Charges and maintain info type record either PF Basis or Eligible pay or PF basis which ever is less i.e

1)PF basis - system will consider PF basis to calculate the EDLI charges.

2)

a) Eligible pay or PF basis which ever is less - System will check PF Basis(10000) and eligible pay(6500) but considers the lesser amount 6500 to calculate the EDLI charges.

b) Eligible pay or PF basis which ever is less - System will check PF Basis(5500) and eligible pay(6500) but considers the lesser amount 5500 to calculate the EDLI charges . 

Regards

Venkatesh

[former_member212146]

Dear Bindu

I think this problem is in employee Master please check Info type 0587, here in the Pension Box you have to select the option Eligible Pay or PF Basis which ever is less. maintain it and check it in Payroll RT.

Cheers

Rabindra Patra

[dsharmak]

Hello Bindu,

     As you may be aware the PF and EDLI admin charges are a small % of the PF contribution. Further, you may have also noticed that the R have a provision of storing upto 2 decimal points. In the event, the admin charges are applied directly, it will result in rounding off and the value stored may not rightly represent the admin charges correctly. Hence the requirement to multiply the same with the GENAU factor and store the same. Now, while storage of this values are done at an employee level, the reporting is done at a trust level. Hence during the PF reporting, we have taken care to correct the factor after summation of the values. This results in rightful representation of the data.

   In order to capture the PF costs at an employee level, in the payroll lschema, after the function INEPF, you may add a rule that divides the admin wage type by the factor GENAU and store this value into a customer wage type. This wage type can then be used for posting. You may also
need to take necessary steps to adjust the rounding off differences,that  may arise , in posting.

Best Regards,
Deepak..