PF Slabs are changed effective date from 1st September 2014

[leelamohan_kavali]

Note No: 1913265 - INEPF : EPF minimum wage ceiling raised to Rs 15,000 per month

Symptom

EPFO has raised the minimum wage ceiling to Rs 15,000 per month from Rs 6,500 per month.

Other Terms

INEPF, PFBAS , PC00_M40_CALC, HINCALCO, PF, Pension, EDLI, EPFO , IT0587

Reason and Prerequisites

Legal Change

Solution

To get the changes, apply the HR Support Package(s) indicated for your
release in the 'Reference to Support Packages' section of this note.

Alternatively, perform the Manual Steps as attached in the document (Manual Steps for EPF Limit.pdf).

Note:

Effective 1st September 2014 the minimum wage ceiling has been changed to Rs 15,000 by EPFO.

Incase you have a need to stop pension contribution specifically for new joining with starting salary Rs 15000,00 post 1st September 2014, same can be achieved by not maintaining the pension details in IT0587 . One need to keep Pension Trust ID , Pension Number , Contributing towards Pension scheme blank with an effective date. This records should have a start date either start of a month or joining date.

You need to ensure that the Contribution type configured in the feature 40EPF is blank for field "PF Eligible Pay" in the view "V_T7INF3".

Incase you have any requirement where the limit is based on the contribution type please check the 3rd page of the document (Manual Steps for EPF Limit.pdf) attached for more details of configuring the PF Eligible Pay in the view V_T7INF3.

1. Changes for minimum PF basis Limit from INR 6500 to INR 15,000.00

(A) Changes in View V_T511P

Step 1 : Go to the transaction SM30. Enter the view name as V_T511P and select ‘Maintain’ button

Step 2: Provide Country Grouping “40”

Step 3: Select constant PFBAS and press . Give the State date as 01.09.2014

Step 4: Change the value 6500 to 15000

Press enter and

Step 5: Select constant PFBAS and press . You would be able to see three entries in the system and the new entry of 15000 from effective date of 01.09.2014 .

Note:

The constant PFBAS - PF Eligible Pay controls the Minimum PF wage.

You need to ensure in the view V_T7INF3, ‘PF eligible Pay’ field is blank for the specific contribution type that you have configured. You can find the relevent contribution types in the HR Feature 40EPF .

Sptes to check view V_T7INF3

Step 1: Go to the transaction SM30. Enter the view name as V_T7INF3 and select  button. The field for the specific contribution type the ‘PF Eligible pay’ should be blank.

PF Eligible Pay field should have Zero.

Where to use V_T7INF3

You have a requirement where you are using multiple Ctype (Contribution types) and each has different PF Eligible Pay and other than 15000 then you need to maintain this table with effective date. This is not relevant in case you believe 15000 is the minimum wage limit for all the contribution type. The same should be maintained in the constant PFBAS as mentioned above.

If both the table V_T7INF3 and constant PFBAS is maintained then the value in the table V_T7INF3 will overwrite the constant value.

Ur's Mohan