PF calculation based on Gross Salary

[Former Member]

Dear Experts, 

Following is our requirement for PF. 

PF CALCULATION

1)      Anybody whose Gross salary <6000 PM, only employee contribution to be deduct I,e 12% of Basic Salary.

2)      Gross Salary >6000 PM, both contribution to be deducted from the employee, I,e 24 % of Basic Salary

3)      Above basic salary Rs. 6500, PF is optional.

4)      The Maximum  basic salary ceiling for plant is Rs. 6500 I,e – 780 PM (12% of Basic)

Let me explain the requirement more clearly, our 1st requirement came reg. PF was to deduct both EE + ER's contribution i.e. 12+12=24% from employees' gross, which has been achieved so far by making /3F1 deductible from gross. Now the requirement has been little modified as stated above, like for emps whose gross<6500, for them only 12% needs to be deducted not 24%, i.e. for them normal PF configuration will be applicable. Now there I'm facing the issue since I already made /3F1 deductible from gross. Now how-come I differentiate ER PF contribution based on gross and personnel area.

Please someone helps me in this regard.

Do I need any enhancement or user-exit.

Please anyone help me resolve.

Regards

Tan

[Former Member]

When i am calling above PCR through ACTIO, its throwing dump in payroll log.

Please help

[sikindar_a]

How about PIT ?

[Former Member]

I added the !st rule through PIT before INEPF and 2nd rule through PIT after INEPF, but now issue is the deduction from gross is not happening in case of /3F3.

Please help

[Sujith_EM]

You can try like this also

First compare the gross salary in a PCR

IF gross Less than < 6000 pass the Basic pay value in to a dummy wage type for this wage type do settings for PF , make sure it is not a payment wage type. Remove PF related configuration for other wage types.

IF > 6000 and < 6500 pass it to two wage types

Like wise you do for the rest.

But my question .. what the requirement about the reports and employer contribution in both cases

[Former Member]

Thanks, sujith.....do u mean to say i would copy /3F3 to three custom wagetypes, one is for gross<6000, 2nd is for gross>6000 (for which employer's contribution will be deductible from gross) and 3rd is for the cases whose PF is flat 780 in case of basic salary 6500.

Can you please a give a bit more clue about writing this PCR.

Regards

Tan

[Sujith_EM]

What are the components you consider for PF .. employee as well employer contributions ?

Only  % of basic ,... or any other wage types

[Former Member]

its only %basic, as we don't have DA or any other PF-able components.

[Sujith_EM]

Is there any condition for employer contribution

[Former Member]

No other condition, it is the same statutory rate except the fact that for most of the employees its deducted from its monthly gross. Only for few employees whose gross is less than 6000 will follow the standard deduction pattern and for plant its flat 780.

Regards

Tan

[Sujith_EM]

So for plant you can achieve by standard master data configuration.

So the second condition  , if salary gross between 6000 and 6500 .. employee contribution as well employer contribution is to be deducted from  employee right  ,( you mentioned 24 % )?

[Former Member]

Thats right Sujith

[Sujith_EM]

Ok then you write  PCRs in which the if the  gross is more that 6000 and less than 6500 ..

First one

Check the gross if it is satisfy your condition please pass the value of basic pay in it into another dummy wage ( not a payment wage type ) type, for this dummy make sure you only tick cumulation for PF rest must be blank as well processing class 72 as 0.

This is for 24 %

This should be insert  before INEPF

Then about the Employer contribution , check the same condition then divide em employer contribution amount by 2 .. and add to itself ... then pass this value in to another deduction wage type .... so in the deduction side there will be two wage types with 12% +12% = 24%. and your PF reports should be correct.

what about the posting ...  if you do like what i said there will be two wage type will go for posting ... one is standard and the second on the custom.

think about how the posting should handle

[Former Member]

Dear Sujith,

Please give the clue about PCR more in details since thus kind of PCR i never wrote before.

Like when you are saying  Check the gross if it is satisfy your condition please pass the value of basic pay in it into another dummy wage ( not a payment wage type ) type:

Which operation should i use to do the above.

For the 2nd one,check the same condition then divide em employer contribution amount by 2 .. and add to itself ... then pass this value in to another deduction wage type .... so in the deduction side...there will be two wage types with 12% +12% = 24%. and your PF reports should be correct......please note i already achieved that by making /3F3 deductible from gross without PCR.

Please help

Regards

Tan

[Former Member]

I wrote the following PCR, please check and also in case of second query i need the amount of /3F3 to be deducted from gross /101, how it can be added to following PCR, do i need any other PCR for same.

ZEPF Personnel Calculation Rule  ZEPF

    *

      1CTC Monthly CTC

        AMT?6000   Comparison

          <

            PRINT      Print table entrie

            ADDWTE     RT   Results table

          >

            PRINT      Print table entrie

            AMT=1000   Set (My basic pay w/t)

            AMT*12     Multiplication

            AMT/100    Division

            ADDWTE/3F3 RT   Results table

Please advise

Regards

Tan

[sikindar_a]

Write another PCR

*

***

AMT=  /3fc

AMT- /101

Addwt *

Just try to check this PCR and also please check whether CC 10 is checked or not

[Former Member]

Please use SAP enhancement HRINCEPF to achieve your requirement.

Regards

Ravikumar

[Former Member]

Thanks for your reply Ravi, i explored the above exit,it seems, that is mainly to override pension basis, can we use it for PF as well.

Please suggest

Regards

Tan

[Former Member]

Experts any update please..?

[Former Member]

Experts any update please..?

[raghu_c]

Your requirement doesnot fall under the standard perview of the PF act, thus i would suggest that you do a custom function development based on the lines of INEPF.

Raghu

[Former Member]

Thanks Raghu, can u throw a bit more light on it, actually i already thought about it, but was not sure how to guide abaper regarding this. I mean can we do an enhancement of INEPF function..?

Regards

Tan

[Former Member]

Dear Experts,

We tried with the enhancement HRINCEPF, but its only updating Pension basis, not PF.

Please help someone, its little urgent.

Regards

Tan