EPF issue with new joinees

[SaiKrishna2024]

Dear Expert,

Where an employee joins on 05^th Apr and his basic salary (prorated for 26 days ) is 34667, the pf settings here  is minimum of 12% of is his basic and 12% of eligible basis (15000).

now since his basic is more than 15000 his pf contribution should be rs 1800. but the system is calculating the basis on prorata basis (basis 15000 * no of days in the month) and coming with an amount approx rs 1560. but since his basic is more than 15000 as per legacy says it should rs 1800.

Kindly provide the solution

Thnaks,

Sai Krishna

[venkat_polisetty]

Hi Sai,

In the case of mid month joining/leaving/absences or transfer scenarios, the PF Basis will be correspondingly prorated and so the contribution calculated will also be prorated.

If the PF basis is eligible pay which is maintained in T511P in the constant PFBAS and currently having the value as 15000 then, in the case of mid month joining or leaving or loss of pay 15000 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

You have to do the coding accordingly so that all your cases are considered in the same

Regards,

Venkat Polisetty

[SaiKrishna2024]

Hi Venkat,

Thank you so much for quick response.

I just go through the node which is provided by you it showing user exit already active.

Should i change the user exit with help of ABAPer or what is the procedure.

Please share coding what should i mention in the user exit.

Thanks,

Sai Krishna

[venkateshorusu]

If any exits are implemented in the system, We should have knowledge on Technical stuff ABAP then only we can do something with it else we should approach technical consultant to change the code as we required.

Regards

Venkatesh

[venkat_polisetty]

Hi,

As Venkatesh said, better you check with your technical guy (ABAP - HR), he can help you in understanding of existed logic in this USER EXIT, If that existed logic does not meet your requirement then go for new logic.

Regards,

Venkat Polisetty

[Former Member]

I don't think this exit can be used to change PF basis, the documentation suggests it can be used to change pension basis.

If you absolutely need this change to be done(suggest you confirm with a legal authority), then you can ask your ABAP consultant to copy INEPF to a Z function and replace the line

ELIG_PF_BAS_PER = T511P-BETRG * PF_ELIG_FAC_PER.

With

ELIG_PF_BAS_PER = T511P-BETRG

Call the Z function in your schema instead of INEPF.

[SaiKrishna2024]

Hi Tania,

How to copy INEPF finction, i am unable to copy and make changes.

Thanks,

Sai Krishna

[Former Member]

Ask your ABAP consultant to create a new function using tcode PE04. Copy all the code from the standard function and change only the lines suggested earlier.

[SaiKrishna2024]

Hi Tania,

Thanks for reply, I will check with ABAPer and update you.

Sai Krishna