8/18/2019 Pension Basis More Than 15K - 1.16% to Govt Contribution

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SAP Note 

Header Data

Symptom 

If an employee is drawing a salary of more than 15,000 INR per month and is an active member of the employees provident fund (EPF), then thegovernment will not contribute to that person’s pension kitty from 1 September 2014. The government ’s contribution will have to be made by theemployee for income above 15000 INR.

i.e., in case of Pension basis more than 15K, for basis above 15K employee has to contribute additionally 1.16 % which used to be contributed byGovt. The employee PF part will be reduced by the same amount.

For example, Let us consider an employee's monthly salary is 25K and his pension basis is also 25K, then for the amount more than 15K which is

10K, 1.16% of that amount i.e., 116 INR will be contributed towards the Govt Pension Contribution. The same amount will get deducted from theemployee's PF amount.

Other Terms 

Employee PF, Govt Contribution towards Pension, Pension basis, V_T7INF1, V_T7INF3, INEPF

Reason and Prerequisites 

Legal Change

Solution 

The changes described in this SAP Note will be included in an HR Support Package, as indicated in the item "Reference to Support Packages".

The Support Package includes the following objects:

l New wagetypes /3FM - Govt Pension Basis, /3FN - Govt Pension Contribution and their relevant carryforward( /ZFM and /ZFN) and broughtforward ( /AFM and /AFN) wagetypes

l Inclusion of new field to hold the wagetype related to Govt Pension contribution in view V_T7INF1 

l   Inclusion of new field to hold the Govt Pension Contribution percentage in view V_T7INF3 

l Changes in INEPF Payroll Function for the calcualtion of Govt Pension Basis and Govt Pension Contribution

l Inclusion of new field to hold Govt Pension contribution wagetype and percentage in EPF Cluster(PC2_IN07)

 As general rule, SAP recommends that you install a solution by applying a Support Package.

Note: Documentation, Transactions and Customizing activities are only delivered via Support Package.

Sampe Configurations for the views V_T7INF1 and V_T7INF3 are as follows

V_T7INF1  

In the above configuration /3FN is the SAP delivered wagetype for EPGCR WT, however customers can have their custom wagetypes maintainedas well.

V_T7INF3  

In the above configuration maintaining the Govt Pen Contribution percentage should be done only from 1 September 2014 i.e., only from

2117876 - Pension basis more than 15K - 1.16% to Govt contribution  

Version  1 Validity: 14.01.2015 - active Language  English

Released On  15.01.2015 09:26:35

Release Status Released for Customer

Component  PY-IN India

Priority  Correction with medium priorityCategory  Legal change

Trust Trust Name Trust Type   EEPFC WT EEVPF WT ERPFC WT ERPNC WT EDLIC WT EDLIA WT PFADM WT EPGCR WT

RPF1 RPFC Trust RPFC /3F1 /3F2 /3F3 /3F4 /3F7 /3F8 /3F9 /3FN

Ctype End Date Start DateEe PF 

Contribution 

Er PF

Contr  

Er Pension 

Contribution Pfadm

EDLI

Contribution 

EDLIAdmin 

Charges 

PF % 

ofinteres 

EEVPF 

Limit 

Govt Pen 

Contribution 

PF

EligiblePay 

1 31.12.9999 01.09.2014 12 12 8.33 0.65 0.5 0.01 12 0 1.16 15,000

8/18/2019 Pension Basis More Than 15K - 1.16% to Govt Contribution

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01.09.2014 the value should be maintained in Govt Pen contribution field.  

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Validity

Support Packages & Patches

Software Component From Rel. To Rel. And Subsequent

SAP_HRCIN  600  600  

604  604  

608  608 

Support Packages

Software Component Release Support Package

SAP_HRCIN  600  SAPK-600B8INSAPHRCIN

 604  SAPK-60484INSAPHRCIN

 608  SAPK-60812INSAPHRCIN