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

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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.

Employer contribution not deducting

Hi,
An employee has taken Maternity leave in this month, she got 3 week paid maternity leave amount(908/-) and one week salary(420/-). But here the issue,Employee contribution Pension is correctly calculating on gross amount i.e 1328 * 8% = 106.24 but Employer contribution is calculting only on salary but not gross.
Even i have got to infotype 71 and check the Employer percentege rate and also i have check the RT table there i can see SMP amount also. It is very urgent ticket to be close with in 12 hours.
Regards
Sailu

hi,
did you checked the processing classes for the maternity leave WT?
regards,
salman

ESIC is not deducting correctly

Hi Experts,
I have a query.
Employees who has resigned from the company. His actual pay will not be the same amt. as it is in basic pay.
And esic should deduct on actual amt. and not in the basic pay amount.
but here the situation is that. It is not calculating on basic pay IT amount. And not on Actual amount displayed in RT.
Please help me to solve this issue.
Regards,
R. Arokia Merlin

What pujar said sound good
Please make sure you have dellimited all infotypes what need delimit
best Regards

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

ER Contribution should not Deduct from EE SAL and not Display in Payslip.

Hi Experts,
I have Pension ER contribution Wage type:
1. That should not deduct from Employee SAL
2. Should not display in Payslip.
3. Amount store in RT.
What changes i should do in V_T512W_D table
Appreciate your early response.
Regards
Raj

Hi,
We are maintaining the EE & ER contribution.
EE is working fine with all the validation & deducting from employee every month.
When we are handling ER contribution that amount is getting deducted from EE sal.
So we want to restrict ER contribution Deducting from employee sal and not to display in Payslip.
Figuring out how can we handle this thru Processing, Cumulating or Evaluation class.
Kindly advise
Regards
Raj

Sap note 1507799 - Sec 80CCD - pension contribution notified by central gov

Dear
I have applied the sap note 1507799 - Sec 80CCD - pension contribution notified by central govt. and have done the necessary manual config steps as mentioned in the sap note.
When i am trying to check this pension contribution notified by central govt item in IT0585 and IT 0586.
i am unable to get this item.
Regards
Vish

Hi ,
First do the manual changes & then apply the note. You will get "Contribution to pension scheme of Central Goverment" this option in IT 585
Regards,
Mahesh

CPF contribution is not deducting on AWS amount for retried employee.

Hi,
Issue reported: - CPF contribution is not deducting on AWS amount for retried employee.
fyi -even though employee is separated his bonus will be paid in month of December
I have checked the AWS wage type, the culmination class 3 is checked, as it is an addition wage type. And its 0185 and 0186 is not delimited also.
How can I found out the root cause?
Regards
Thomas
Edited by: Thomas Padiyara on Dec 9, 2010 2:49 AM

Patch updates issue.

Pension contributions UK Payroll

Hi Experts,
This Issue related to "Pension Contribution"
Scheme reference 001
Local Government Pension Contributions are not being taken where existing employees are being opted into the scheme.
Detail
Employees are being opted into the LGO pension scheme via personnel actions, PA40
Info type 71 looks ok
No contributions are being collected from pay.
Examples in production 5400 Armstrong and 6000 Alexander.
I have copied D Exton 6500 into Qulaity and tested and cannot get SAP to deduct contributions.
I have run her record through to Jan 2010 to get results.
Nov - was in LGO scheme - conts. taken
Dec - taken out of scheme wef 1-11-09 conts. refunded correctly
Dec - Opted back into the scheme via personnel actions wef 1-12-09. No conts deducted
Jan - Opted back into the scheme via maintain and info type 71 wef 1-1-10. No conts deducted.
Kind Regards
Githa

Hi,
PLease check the configuration for the same
please check the table V_T5G36_A
Regards,
Kapil Kaushal

Employees Pension Contribution -EPF

Hi,
For one of the employee we have maintained Info Type 587 with the below conditions
Employees PF Contribution -   PF Basis
Employer's PF Contribution - PF Basis
Employer's Pension Contribution - Eligible Pay or PF Basis whichever is less
The Employee has joined newly in the current month, but when we run the Payroll, the following Deductions are happening in RT.
/111     EPF Basis     6,780.80
/3F1     Ee PF contribution     814- This is correct
/3F3     Er PF contribution     381-(supposed to be 3.67% of PF basis)
/3F4     Er Pension contribution     433-(supposed to be 8.33% of PF basis)
I could not understand on what basis /3F3 & /3F4 amount is getting calculated. Experts please provide your input.

The proration as mentioned by you happens only when the employee joined/left in the middle of the month. However, in case of LOP, PF is calculated on the earned basic (reduced) and eligible pay, whichever is less. Please check with your legal counsel for getting legal opinion on the matter.
However, if you still need to prorate the eligible pay based on LOP days, then write a rule which will check the value of /111 and limit it to eligible pay (prorated in case of LOP) before function INEPF is called in the schema. This way the value passed on to INEPF in WT /111 will be the prorated value and your requirement will be met.
But, I would still ask you to get legal opinion on the same as it may lead to statutory default in case the standard calculation is correct. It is always better and legally safe to deduct and contribute more PF.
From SAP India
In the case of mid month joining/leaving/absences or transfer
scenarios, the Pension/PF Basis will be correspondingly prorated and
so the contribution calculated will also be prorated. In case of LWP
the PF basis is not prorated.
If the pension basis is eligible pay which is maintained in T511P in theconstant PFBAS and currently having the value as 6500 then, in the case
of mid month joining 6500 gets prorated for the number of days employee was in the trust.
If the customer doesn't want this pension basis to be prorated then a
User Exit: Override Employer Pension Basis has been provided in payroll
function INEPF. The name of the exit is EXIT_HINCALC0_002. This exit is
in the enhancement HRINCEPF. We request you to go through the
documentation of this user exit at
Payroll India > Statutory Social Contribution > Provident Fund >
User Exit: Override Employer Pension Basis
Please keep in mind that above user exit is only for Pension not for
PF..
Edited by: Sikindar on Oct 9, 2009 2:14 PM

Pension Contributions

Hi Experts,
I have issue in the UK payroll part.
My client has run the payroll, exited it and posting is complete. Later she came to know that the Basic pay (basic pay is both pensionable and taxable) amounting say 27000 gbp which has been paid is incorrect. She did not know that only 25000 gbp is pensionable and the remaining 2000 gbp is not i.e. the system has deducted tax and pension for the entire amount of 27000 gbp which is correct but now the concern is of the remaining 2000 gbp on which the system has already deducted additional pension contribution from the employee and posting has also been done. (Please note that the configuration is all fine)
Could someone please tell me how to make an adjustment for paying the employee back the pension for the amount 2000 gbp (which comes around 64 pounds) and also let me know the impact on the finance (posting) point of veiw.
Many Thanks in advance....
Warm Rgds,
Arun.M

To explain more;
Taxable amt - 27000 gbp
Pensionable amt - 25000 gbp out of 27000 gbp and the remaining is not pensionable.
Now that the system has deducted tax for the entire amount of 27000 gbp, our is on the pensionable amount. The employee has pensin for the entire amount of 27000 gbp which is incorrect rather he should have paid a pension from the amount of 25000 gbp. Now that he has paid an extra pension on the amount of 2000 gbp, please let me know how to pay back the employee as the posting is already done.

Pension Contribution

Hi
I am working on International Payroll.
When an employee is hired in the mid-month, the Employee and Employer pension contribution is not getting calculated and not getting deducted in the payroll.
Kindly resolve this issue.
Thanks
vish

Hi sunny,
The system is not throwing any error.
The system is not calculating and deducting the pension contribution for employees in the payroll who are hired in mid-month.
For Eg: Employees who are hired on 10th or 15th or 20 th of a month.
Actually the pension contribution has to be calculated on prorata basis.
Thanks
Vish

Re:problem with employeer pension contribution wage type /3f4

hi,
One of the the employee not calculating employeer pension contribution wage /3f4 even though iam maintain the master data
in infotype 0587 for him we are maintain PENSION TRUST ID ,PENSION NUMBER and also pension contribution details also.
but iam checked his date birth is 1948 his age is almost 61 years but pf wages are calculating correctly /3f1 ee cont and/3f3 er cont please any body knows the reason for not calculating employeer pension contribution let me reply.
regards,
mgr

Hi
For an employee who has attained 58 years of age ,there will be no pension contribution calculated.
Here the age of the employee is 61,therefore there will be no pension contribution
Regards

Employer pension contribution issue

Hi experts,
please suggest me this issue as per SAP employer pension contribution have to deduct 541 rupees based of 6500 basic amount with 8.33%. More than 6500 basic amount have to add in 3.67% employer PF contribution.So one employee basic is 50000 rupees per month but employee has joined on 09.04.2008 so his basic is 36667 rupees.employer PF is 4400 rupees. Now employer pension contribution have to deduct only on 6500 of 8.33% that amount is 541 remaining amount have to add in 3.67% of employer pf contribution. So employer pension contribution is 541 amd employer PF contribution is 3859 but system is calculating 541/30days*22 days so system showing 397 rupees. But my client asking system have to show 541 rupees. Please suggest me you can get reward points
Thanks and regards
Raghuram

hi,
the total EPS contribution should not exceed 541 per month or
541 * 12 for a year , if it is less then actually there is no issue.
There is a valid reason in ur case , the employee is not present for all working days in this month.
Regards
sameer

Proration of ER Pension Contribution - GB Payroll

Hi Experts,
My client requirement is that the ER pension contribution (based on full pay) should be calculated till the EE gets Statutory payment ie if an EE goes on maternity leave the ER Pension contribution should be calculated till the EE gets SMP Pay.
So i passed on the Pension elements to a notional Wage type (9000), and wrote a PCR on proration and assigned it to the notional WT. The ER contribution gets calculated till the EE goes on maternity leave. The calculation get stopped from the first month the EE goes on maternity leave.
I checked the Schema, i can see my notional WT in IT table and OT Table of GPEN, but the calculation is not happening.
kindly suggest me how should i proceed on this.

Did you check the specification of the Evaluation Class 02 for the wagetype under concern (used for pension type) in table V_512W_D? This controls the printing on the rem statement.

Re: Pension Contribution not deducting correctly

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