This is related to India Payroll PF Calculation.
Here PF Basis = Basic Pay & Eligible Pay = Rs 6500/-.
Eligible pay or PF basis, whichever is less, standard system
considers that as the PF contribution.
For Ex:
If Basic Pay <= Rs 6500, PF wud be 12% of actual Basic
If Basic Pay > Rs 6500, PF wud be 12% Rs 6500
This is working fine in the standard system.
Current Requirement is:
When there is a loss of pay for an emp, the Basic is prorated
accordingly. But the twist in the story is The Eligible Pay also
needs to be prorated. And then, the lesser of the prorated basic
& prorated eligible pay is to be considered for the PF
calculation.
For Ex:
An emp with basic pay of Rs8000, has 3 day's loss of pay in a
month. The prorated basic becomes Rs7200 for that month
deducting 8000*3/30 as loss of pay from basic pay, which is
still higher than the eligible pay. In such a scenario, the
system should not calulate PF based on the eligible pay of
Rs6500. Instead it has to prorate the eligible pay accordingly
and then consider the lesser of prorated basic and prorated
eligible pay for PF calc. i.e;
Prorated eligible pay = Rs5850 [deducting 6500*3/30 as loss of
pay from eligible pay]
How to prorate this Eligible Pay ?