Pension Deduction

Dear Experts,
According to Indian law, pension contribution of employee above 58 years of age should not be deducted. but the system continues to deduct it. Does it automatically stop the deduction or do we have to manually remove the tick from PF Contribution ?
Regards
Bindumadhav
9869028264.

Sorry. The system works fine....
But How did i get list in form no 4 (Pension) with persons above 58 years?
Regards
Bindumadhav
9869028264

Similar Messages

How to exclude salary arrears from pension deduction?

I have setup a pension retro element and its calculating the retro amount correctly.
However, its using sum of salary arrears (say,arrears for the month of March and April) and adding that to May salary and deducting pension on the total sum.
(we do not want this, we want only May salary to be considered for pension retro element)
Does anyone know how to exclude salary arrears from pension deduction element? Is there any obvious step, which I am missing in while defining the element?

Hi,
While doing retro for arrears, it will give at a time in one payroll only, no standard for installment payments.
2nd option:
Calculate the Total Arrears amount and divide it by four installments and through IT 0014 with New wage type and give for 4 months as start and end date.
* you have to create a new wage type which is taxable and assigned to IT 0014.
* add this new wt in Remuneration form in Earnings side.
Regards,
Praneeth kumar

No Pension Deduction for Emp. on Maternity Leave

Hi Friends,
Greetings !!
Need your suggestions on one issue which is related to deduction of pesion contribution on Maternity Leave...
The issue is:
One employee is on Maternity leave & during this period, her contribution for Pension schems is not deducting......
what should be done to fix this issue....
Appreciate your responses...
Thanks,
Sai P

Querry the Leave Type in a rule....
If the value of the rule is anything other than zero ..then make then directly pass all the wage types to the next line..without being processed through XVAL or ZVAL....

PF & Pension Deduction on Basic Arrears

Dear Consultnats,
May I know in which Wagetype, Employer's PF & Pension contribution on Basic Arrears is stored ? I have marked Basic Arrears Wagetype 1ARR for Cumulation Class 11 (EPF Basis). Still the Pay slip shows the Employer PF & Pension basis as only current Basic & NOT as Basic + Basic Arrears. In Form 12 A also only Basic is shown but we need Basic + Basic Arrears
How can I include Basic Arrears in PF Basis?
Regards
Bindumadhav
Edited by: BINDUMADHAV AMBIKE on Dec 9, 2009 3:41 PM

Dear Vikram & Ramm,
Many thanks for your help.
Here my problem is When any employee is given Basic & DA Arrears, his (employee) PF contribution on Arrears is calculataed & deducted but Employer's contribution is not calculated. Even employer's PF Basis for that month does not show original values + Arrears. It only shows original Basic + DA & calculates Er PF Contribution on it.
/ZF5 is Arrears of Ee PF Contribution. Similarly I created two wagetypes /XF5 = Er PF Contri Arrears & /YF5 = Er Pension Contri Arrears. I copied IN42, 43, 44 in ZN42, 43, 44. & like /3F5 (Ee Monthly PF Contri), I added following nodes by replacing /3F5 by /3F3 & /3F4. & /AF5 by /BF5 & /CF5.
ZN42
/3F5
ELIMI *
SUBWTD/AF5
ZN43
/3F5
ELIMI *
ADDWTD/AF5
ZN44
/AF5
ELIMI *
ADDWTE/ZF5
In the payslip I added my wagetypes /XF5 & /YF5 but both these wagetypes show original values of Er Contribution & not the arrears. Is the logic correct or not ? How can I add Basic Arrears & DA Arrears in the Er PF & Pension Basis ?
Regards
Bindumadhav
Regards
Bindumadhav

Tax and Pension deducting is not happing for few months

Hi,
My client facing with an issue. The issue is like this........
An employee has taken Maternity leave on November 2007 to May 2008. Here She was getting Maternity pay every month and pension and tax deducting.But when it comes to only for Jan 2008 payroll tax is refunding insted of deducting and for march 2008, April and june payroll it was not deducting pension. What will be the reason why system is behaving like this.
Please can you share your thoughs it is very urgent issue.
Regards
Sailu

Make sure if there isn't a short somewhere. (unused standoffs a.s.o. ) Better take mobo out of case and put it over an isolated surface, connect P.S. and all hardware and see if problem continue.

Pension Deduction stoppage at 58 yrs

Hello,
I understand that pension contribution should automatically stop at age of 58 yrs. There is a function module
COMPUTE_YEARS_BETWEEN_DATES available in the function INEPF.
But I am facing an issue when the the IT 587 record is maintained from date of joining. Ideally the system should use the date of birth and the current payroll period to compute 58 yrs, but it is using date of bith and start date of IT 587 record, hence incorrect results.
Regards
Yashika

Hello,
I understand that pension contribution should automatically stop at age of 58 yrs. There is a function module
COMPUTE_YEARS_BETWEEN_DATES available in the function INEPF.
But I am facing an issue when the the IT 587 record is maintained from date of joining. Ideally the system should use the date of birth and the current payroll period to compute 58 yrs, but it is using date of bith and start date of IT 587 record, hence incorrect results.
Regards
Yashika
Hi Yashika,
I'm presuming that u have an employee with more than 58 years of age. Did u check that his/her payroll log shows /3F4 with some amt still ?
Wud like to ask to calculate the age of that person as on payroll run date.
Regards,
ARNAV...

Incorrect contribution value after rate change in pension scheme

Hi Guys,
I have come across a peculiar thing while changing the rates for the employee and employer contributions for a pension scheme.
We have a pension scheme called "Opt60" which is implemented by having a recurring pre-tax deduction element. The formula attached for this element calculates the employee and employer contributions and directly feeds the parent element for employee contribution an indirectly feeds an employer contribution element(non-recurring and employer charge classification).
The rates for the employee and employer contributions are stored in 2 globals (13% for EE and 12.5% respectively).
Now, when running the quickpays from april to june correctly calculates the EE and ER contributions. But when i change the global values(EE= 18% and ER=9.8%) on 01-JUL-2011 in update mode. The EE and ER contributions are coming something else(incase of EE it is neither 13% nor 18%) for the month of July. But when i run quickpays for subsequent months like Aug, Sep, Oct, Nov and so on, they are correctly calculated at 18% for EE contributions and 9.8% for ER contributions.
Also, if i do a balance adjustment for the month of July for EE and ER contribution then, for the next month ie.Aug, they are coming exactly same as July months and from now the subsequent months like Sep, Oct, Nov and so on, it is correctly calculated at 18% for EE contributions and 9.8% for ER contributions.
Can you take a look at this and suggest me something i have be overlooking.
Also, the Balance value used in the formula is of dimension ASGTD_YTD. Does this have an effect on the outcome of the above mentioned % contributions?
With Regards
Sachin S.

Is the same WT being used for the pension deduction?
Does that WT appear in the employee's RT?
In the Benefits Processing part of your Payroll Schema, I presume that you are using function P0169 to process the Pension Plan. What is the processing happening in function P0169?

Teachers Pension (UK) retro process

We have applied patch for Tiered contribution for teachers pension in UK legislation.
In phase one, I made changes for deducting Teacher's pension and
in second phase now I am trying to make changes for retro processing.
I am following the readme.txt file of the patch and followed following steps.
*However the new retro element I created for teachers pension is NOT being considered while retro processing.
Do I need to pass any direct/indirect results from the formula result rules?
Has anyone done this ? Could you please suggest?
===============================
Arrears Processing and Reporting
As per the requirements the arrears processing should happen in the
corresponding period in which the change is effective from. For this,
new retro elements should be defined for each earnings element contributing
to the Annual Gross Salary or Period salary on which the percentage is
applied.
Also Retro elements should be defined for the Pension deduction elements.
For reporting retro values related to pension contribution, retro components
will be seeded for the Seeded information element
'Tiered Contributions Information'
For this new seeded formula function will be seeded.
Formula Function Name :PAY_GB_TPS_TIER_DERIVE().
Suggested Code:
l_pension_tier = PAY_GB_TPS_TIER_DERIVE()
/* New seeded formula function to return the correct Pension tier in retro
payroll run Without this function retro payroll run will return only the
difference, with this function and below sum statement Retro will run
results with the exact band used*/
Pension_Tier = Pension_Tier + l_pension_tier
This above suggested code needs to be included in the existing pension
deduction formula, at the end of the pension formula before return statements
to the information element.
The above code ensures that in the retro run the pension tier returned to
the information element is increased by the difference.
=================================================

It appears from the previous bit of the readme that it's relying on the TRANSFERPTD dimension for doing the UDT lookup:
l_tps_emp_contr_sal = FULL_TIME_ANNUAL_SALARY_TPS_ASG_TRANSFER_PTD
/* New seeded balance which will give the Annual Gross Full time Salary */
/* The below section will fetch the employee contribution percentage and
Employer Contribution Percentage */
l_EE_Contribution_Percent = to_number(GET_TABLE_VALUE
('PQP_TPA_PENSIONABLE_PAY_RANGE',
                                   'Employee Contribution Rate',
                                   to_char(l_tps_emp_contr_sal)))
l_ER_Contribution_Percent = to_number(GET_TABLE_VALUE
('PQP_TPA_PENSIONABLE_PAY_RANGE',
                                   'Employer Contribution Rate',
                                   to_char(l_tps_emp_contr_sal)))
/* The below section will determine the band the current assignment will
fall into */
l_band = to_number(GET_TABLE_VALUE
('PQP_TPA_PENSIONABLE_PAY_RANGE',
          'Pension Tier', to_char(l_tps_emp_contr_sal)) )
Pension_Tier = l_band
Does this look like what's going on in your pension deduction calculation formula?
What happens if you comment out the function call?

Arrears and Deductions

Dear Friends,
I am working in payroll internation (UAE). We are facing an issue which needs to be addressed imm .
there is a scenario in which employee was absconding
he has almost one month unauthorised leave ..and his payroll was locked
he came back in october ..there is a PENSION DEDUCTION WHICH HAS TO HAPPEN IT DID NOT HAPPEN IN THE MONTH OF SEP SINCE THE PAYROLL WAS NOT RUN, IN Sep NET PAY WAS ZERO ..
In october when we ran payroll , the foll situation arose.
THERE IS A DEDUCTION ON PENSION (NPP Dedn) 750 DOLLORS ... WHICH WENT AS /561 IN SEP AND IN OCT AS /563
BUT THERE IS A ARREAR ALSO GENERATED FOR THE SAME AMOUNT ..
SO NOW FOR SAME AMOUNT HE IS GETTING DEDUCTED TWICE AS CLAIM FM PREVIOUS PERIOD AND AGAIN AS ARREARS ..ANY IDEA WHY THIS IS HAPPENING ..
Please advise..

Hi sikindar ,
for August ,
This is his earnings
Total Earnings                        8,855.00   Total Deductions                          750.50
for september
Basic Pay                                0.00    National Pension EE                     750.50
                                                                      Claim                                   750.50
for October
                                                              National Pension EE                   750.50
                                                               National Pension Arrear           750.50
                                                                Claim from Previous period    750.50
Total Earnings                       10,963.34   Total Deductions                        2,251.50
actually the ded should be 750.5 + 750.5 (sep and oct) , but there is also an arrear coming in .
I have checked table V_T51P6 , There is no configuration done for this Wage type . 9005 is the wage type and 9055 is the arrear wage type that is getting generated .
If I hv to do the configuration table t51p6 will have wage type 9005 or 9055..
please advise

PE51 - Payslip

In PE51, I have grouped 10 wage types in a window
But client due to some purpose doesnt want the 2 wage types in that group from displaying in payslip
If i remove those 2 wage types from the group, it affects so many totals in different forms
How to avoid any wage type from displaying by creating a rule
Can anyone help in this regard.....

Hi thanks all for valuable inputs
For GB Payroll
Its a situation of Pension Deduction
wherein 10 wage types incl Employee (08) and employer contribution (02) has been grouped in EC 02
when I run the Gross to Net Detail ie
Grouping of **02 is done in Window
this means it displays all the 10 wage types which they dont want to display 02 wage types ie Employer contribution
With regard to Total I have balanced these 2 wage types in cumulation identifier, so that it does not add up.
If i remove the wage type from window my problem will be solved but client uses this EC 02 pension deduction for running overall organisation level reports as well wherein employer contribution should also included
Hence i dont want to disturb the layer formed altready but by writing any rules which can be implied for this form only.
Hope I am clear No. In this regard I wrote a rule now and tried as below
Rule N0    C    Table    Fleild        Typ        Co           Value 1
01      1              XRT    LGART        C         NE          '9W1S
this working fine for one wage type but I must check another wage type also
hence added liek below
Rule N0    C    Table    Fleild        Typ        Co           Value 1
01      1     *        XRT    LGART        C         NE          '9W1S
01      2              XRT    LGART        C         NE          '9N1M
but it is not working
how to check a condition here wherein these two wage types should not be displayed

Re: Pension Contribution not deducting correctly

Dear Gurus,
When an employee is hired in the mid-month, the Employee and Employer pension contribution is not getting deducted properly.
if the basic is greater than 6000 employer pension should deduct 541. it is not deducting correctly when the joining date is greater than 1st of the month.
Kindly help to sort out this issue.
Thanks
Anbu

For mid-month Hiree and Termination on Savings Plans and Pensions - there are certain SAP notes that need checked. I found one for Savings plan contribution -
0000725626 - Savings/ retirement plan not processed in first period
I have seen another note for India Benefits that may be of help to you.
SAP Note 1160806 -PF and Pension contri.for mid-month joining & termin.
Please verify that these are part of your code line. Although these may be old fixes, it is better to verify rather than assuming ECC6 has these already.
Hope this helps,
Roopa

Pension plan deduction

Dear friends,
The pension record (IT0169) is delimited for an employee within a pay period.
Still pension is deducting for the entire period.
The employee is going to be separated from company.Due to settlement employee has active status till end of pay period.
Where as IT0169 is delimited before end of pay period. But pay results shows full deduction ignoring the delimition of IT0169.
How the deduction can be controlled based on pension record validity??
Thanks & Regards
JIm

Hi Jimson
P0169 function parameter 1 set in your payroll schema determines the date on which employee would be eligible for deduction or not.
Either deductions would be taken in full or not taken at all which depends upon parameter 1.
Please look at parameter and update your infotype 0169 accordingly.
If paramater 1 is BEG then you need to have employee master data for 0169 delimited before just a date before to current pay period start date.
If paramater 1 is END then you need to have employee master data for 0169 delimited at any date before to current pay period end date.
If paramater 1 is CHK then you need to have employee master data for 0169 delimited before just a date before to current pay period payment date.
Thanks,
Ameet

Pension is not getting deducted

Hi Sappers,
Pension is not getting deducted for some employees, I have checked all the tables & nodes under payroll India>Statutory Social Contribution>Provident Fund as well as IT 587 from the DOJ....can any one help me in this regards?
Thanks in advance.

Hi,
Can u check In T7INF3 is contribution percentage has been maintained as 8.33%??
Check once again all the tables T7INF1,3,5,7
Is ur PF amount is coming????
Revert Back
Regards
Pavani

Posting Error for Pensioner who are with some Third party Deductions

Dear all:
While posting Payroll result to FI, there is a issue that "cost centre is not assigned" for the pensioners(Who are with some deductions like income Tax, bank Loan and so on) . The Cost Centre is assigned with Org Unit and Positon, but for pensioners, there is no position in the org unit.
how we could handle it?
Any tip is greatly appreciated,
Thank a lot in advance!

Hi Sathya,
This is how we have setup the retirees (pensioners).
If we speak about the pensioners from Business point of view, then there should be only pensioner department (or PA) and every retiree should be assign to it.
So we have created one position which is applicable to every retiree and only assigned to org unti (retiree) which has the cost center default on it.
Try presenting this structure to your client. This will surely simplify the business processes around pensioners.
Arti

Pension Contribution not deducting correctly and Arrears

Dear Experts!
I am facing with a big problem with calculation Pension Contribution in India Payroll.
First, the issue with employee join into company in middle month, i have modified EXIT_HINCALC0_002 and it's right.
However, the problem when a employee has an arrears of last month, so my customer requires that: base on /111 + arrears to decide the amount of Pension Contribution.
If /111 + arrears >= 6500 so assigning /3FC = 6500
Else /3FC = /111 + arrears.
But I don't know, how to calculate arrears in FUINEPF to choose the suitable value for /3FC.
Please help me. Thank a lot.

Thank for your reply.
I have read the note and see that: this is the problem when employee joined in the middle month <not from 1st of month>. However, I have fixed this problem. And the result is OK.
The issue now is to decide value of /3FC not only base on /111 but also amount of Arrears. I don't know how to calculate Arrears, especially in FUINEPF.

Pension Deduction

Similar Messages

Maybe you are looking for