Skip to Content

EPF issue with new joinees

Dear Expert,


Where an employee joins on 05th Apr and his basic salary (prorated for 26 days ) is 34667, the pf settings here  is minimum of 12% of is his basic and 12% of eligible basis (15000).

now since his basic is more than 15000 his pf contribution should be rs 1800. but the system is calculating the basis on prorata basis (basis 15000 * no of days in the month) and coming with an amount approx rs 1560. but since his basic is more than 15000 as per legacy says it should rs 1800.


Kindly provide the solution

Thnaks,

Sai Krishna

Capture.PNG (19.9 kB)
Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • Nov 02, 2015 at 06:15 AM

    Hi Sai,

    In the case of mid month joining/leaving/absences or transfer scenarios, the PF Basis will be correspondingly prorated and so the contribution calculated will also be prorated.

    If the PF basis is eligible pay which is maintained in T511P in the constant PFBAS and currently having the value as 15000 then, in the case of mid month joining or leaving or loss of pay 15000 gets prorated for the number of days employee was in the trust.

    If the customer doesn't want this pension basis to be prorated then a User Exit: Override Employer Pension Basis has been provided in payroll function INEPF.

    The name of the exit is EXIT_HINCALC0_002. This exit is in the enhancement HRINCEPF. We request you to go through the documentation of this user exit at Payroll India --> Statutory Social Contribution

    ---> Provident Fund --->User Exit: Override Employer Pension Basis

    You have to do the coding accordingly so that all your cases are considered in the same

    Regards,

    Venkat Polisetty

    Add comment
    10|10000 characters needed characters exceeded