Regarding PF calculation on wage type

[Former Member]

Hello friends,

Can any body tell me where i have to declare calculation of pf on wage type. i.e. I have created one wage type but system does not

calculate pf on that amount

[Former Member · Accepted solution]

Hi Umesh,

If you want deduct p.f on leave encashemnt wage type.follow this procedure

1.Go to the table V_512w_d and select ur leave encashment wage type

2.In that go to cumulation classes and put tick mark in cumulation class 11.E.P.F Basis

Importnat note : As per new amendment to E.P.F act from first april 2008 onwards employer need not pay p.f on leave encashment.

Regards

Ramesh

[Former Member · Accepted solution]

Hello Ramesh,

Thanks for reply and your anser is very helpful.My problem has been resolved .

[sikindar_a]

PF is statutory one

will get caluculated on basic on 12% or 6500 acccording t employee wish

[Former Member]

Hello sikinder,

Thanks for reply. I have created wage type for leave encashment and want to deduct pf on that amount but its not doing

so. So please tell me where i have miss my customization

[sikindar_a]

is this ur requirement

as per standrad rule we dont have any deduction on leave encashment

[Former Member]

Yes this is our customized rule and want to deduct pf on that amount please tell me solution. Is this in can i do in PCR.

[sikindar_a]

check with rameshs response it is good instead of changeing the pcr

and also rule is not there for deduction of leave encashment

[Former Member]

hi for pf u need not to create a wagetype.already technical wagetype are there .still u want the u can assign them in the following mode.

configure ur calculation in the following step.

payroll india-statuary social contribution-provident fund.

if u want to give technical wagetype then select

/3f1, /3f2, /3f3,/3f4 ,/3f7,/3f8 ,/3f9.

and create a record in 587 itype.