Employer's PF contribution s'd not exceed the amt 780/-

[Former Member]

Hi,

Can anybody help me how can I fix the Employer's PF contribution to Rs. 780/- when Basic pay is more than Rs. 6500/-.That is to say if an EE's Basic is 10,000/-, his PF contribution will be 12% (1200/-) but Employer's contribution towards PF should not exceed 780/- for any employee whose Basic is greater than 6500/-.

Pls. help if any change in IMG setting is required or I need to create Rule or Function for this. If yes, then please guide me the steps to do it.

Regards,

Rajesh S

[Former Member · Accepted solution]

Hi,

in info type 587, select the radio button "Eligible Pay or PF Basis which ever is less"

That will solve ur problem.

Kumar

[Former Member]

Dear Rajesh

Can you explain me how you solved this problem the same requirment with my client

Regards

RBS

[Former Member]

Hi,

Maintain celling for the employer in the IT-0587 as below.

PF Basi s- for employee

PFBasis which ever is less -For Employer .

All the best

KRC

[sikindar_a]

As said by our gurus check with them in IT0587 but in the back end u shd fix ur PFBAIS as 6 500 in V_T511K

[Former Member]

Hi Experts,

Thanks for your solutions that resolved the issue.

Full points to you all.

Regards,

Rajesh

[Former Member]

Hi,

Request you to pls. clear my doubt on the same subject -- Do I need to make any changes in the configuration of "Posting to Accounting" nodes in IMG setting for posting purpose.

Regards,

Rajesh

[Former Member]

No Rajesh, Posting is dependent on ur wage types not the master data configuration in this case.

[Former Member]

Hi rajesh,

Check the infotype 587.

Here u will get 2 option for the computation of the basis of emplyee.

1. Minimum of PF basis and eligible pay

2. PF Basis

select the first 1 and test it. It will solve ur issue.

Regards,

Praveen