PF Contribution details for Mid Month Joiners are inaccurate.

[former_member199671]

Hello SAPians,

Greetings from Amith.

Here i am explaining in brief about the situation for an Employee pf contribution.

Though I am briefing only about the ee contribution, it has extrapolate on the other components of PF aswell.

Monthly basic salary = 279000

Joining date = 30.12.2014

Earned basic(prorata for 2 days attended) = 18000.00

What is the PF basis for this individual?

SAP is calculating the PF basis as as follows

/111 EPF Basis  01 - 18000.00

/3FA PF basis fo0101 - 967.74

/3F1 Ee PF contr0101 - 116.12

Where as client says

/3FA PF basis fo0101 - 15000.00

/3F1 Ee PF contr0101 - 1800.00

Please let me know, if SAP is correct, or if the client is correct. Since the PF contribution details are calculated by INEPF, which is the standard function, what scope do I have to resolve this issue?

[former_member199671]

Dear Sankarshan Dey and Sandeep Thakur, Thankyou for response.

But the question is completely different and your responses is not addressing the actual question.

Scenario is the PF basis amount must be the earned basic or 15000 IRN which ever is less.

However in the case of mid month joiners, should the 15000 ceiling limit also get prorated?

[Sanky]

Hi Amith,

For this case you have to maintain PF basis in IT587 for this employee or for for your client.

Then write the below PCR with PIT function and insert after PCR X023.

ZTST

3

   ****

         ADDWT *

   /111

         AMT=  /111

         AMT?ZCONST

               *

                  AMT=ZCONST

                  ADDWT *

               <

                  ADDWT *

Here CONST is the constant and maintained in T511K with value 15000.

Regards,

Sankarsan

[Former Member]

Please maintained the IT0587 Like these ..

Basis for contribution : Eligible pay or which ever is less

You select the PF basis due to system is calculating like these .

[Sanky]

Hi Amith,

In the IT587 you have maintained employee PF details wrongly.

Have you maintained the radio button of PF basis or minimum contrubution which ever is less for both the case i.e means for Employee part as well as Employer part?

See calculation is executing in this wage that.

PF basis= (15000*2)/31= 967.74

EE Contribution= 967.74 * 0.12= 116.13

Check and tell me.

Regards,

Sankarsan