how to increase pension limit from 6500 to 15000

[Former Member]

Hello Guru's,

As per new govt. rule we need to increase  pension limit to be increase to Rs.15000 from Rs. 6500 for one of my client. any patches or notes available in sap? Kindly help.

[Former Member · Accepted solution]

Hi SAP Release EPF Note on 18.06.2014.

Manual corrections also there. if your system is not up to the patch level as suggested in the SAP Note take the Abaper help to do corrections directly in the system.

[Former Member · Accepted solution]

thnx for the info

[Former Member · Accepted solution]

Hi ,

Thanks Bro 

Regards,

Sajid

[Former Member · Accepted solution]

Thanks Praneeth

[Former Member]

Hi Gurus,

Will you please help in configuring EPF as per the below given Scenario:

I am  not sure how to do this & also not having much knowledge on on PCR's

Current Setup :  12 % on Basic

We required :

1. If Basic > 15K  , then it should calculate 12% on Basic

2. If Basic < 15K , then system should calculate ( basic+CCA+Education Allowance + Conveyance + Medical + Special Allowance )

3. If it crosses 15K , then Fix PF slab limit to Rs.1800/- , if not calculate 12% on actuals.

4. Pension should be on 15K

AbidAhmed

[Former Member]

Hi Abid,

Open new thread for your requirement, why because it is already closed and another user thread,

Best Regards.

[Former Member]

Dear Friends,

    My user wants  New EPFO rule should calculate  for Multiple Contributions( Basic , CCA , Special Allowance ). Is it possible ?

Please help..

Abid

[Former Member]

PF will calculate on selecting the CC 11 of wage types. if you want to add wage types for the PF calculation check mark CC 11 for that wage type in the table v_512w_d.

[Former Member]

Thanks Praneeth..

Will that rule works in below scenarios..

1. Any Employee whose Basic salary is Rs.15000 or more PF will be calculated on Basic @12%

2. If Basic is less than Rs.15000, we are required to consider gross salary excluding HRA

Ex : Basic + CCA + Education Allowance + Medical Allowance

as basic wages  and calculate 12% on these components restricting to max contribution of Rs.1800 per month on ceiling of 15 K

Please Help..

Abid

[Former Member]

As per the Govt. rule PF calculation on Basic + DA + Spl. Allowances (in some cases only). not all the salary components. if you want to give on other components check with the FI tax department in the Client place and take the approval from the client and then do changes for the remaining salary components.

which ever wage type is maintained CC-11 those wage types will consider for PF calculation and it will check the PF Basis ceiling 15K and it will multiply with 12% on that amount.

[Former Member]

Hi gurus.

After updating the patch EDLI  and other deductions are coming wrong.

regards,

Onkar

[Former Member]

Hi,

Did u check HR Feature 40EPF  and table V_T7INF3

[Former Member]

why 40 epf ther is no change in 40 epf...and V_T7INF3  ther is no  need to change in this table nor it is mentioned to change this table..

[former_member182306]

Please open your question in another thread .

[former_member182306]

SAP will come up with note Please wait for SAP to release a note

Please dont do any change in SAP Standard tables as it will have an impact on other tables. So wait for sometime

[Former Member]

yes rajesh i also telling every one that we have to wait for SAP Note. these configurations need Table change as well as program too. Do you have any clarification regarding the PF contribution amounts for Employee and Employer ?

[former_member182306]

EPF is now mandatory to all those whose salary is less than Rs.15,000

Recently Employee Provident Fund Organization (EPFO) changed few rules related to EPF, EPS and EDLI. These changes will come into effect from 1st September 2014.

Below is the graphical representation of how your EPF contribution along with employer contribution will get distributed monthly.

Please note that Salary for this purpose means Basic along with DA.

The above four changes in detail.

1) EPF is now mandatory to all those whose salary is less than Rs.15,000

Previously the limit was Rs.6,500. But this is now raised to Rs.15,000. So whoever falls below Rs.15,000 of salary per month then they will have to contribute compulsorily to EPF Scheme.

2) Minimum monthly pension will be Rs.1,000 per month.

Under new rules, widow of a member will get a minimum monthly pension of Rs.1,000. For children it is fixed Rs.250 and orphans it is Rs.750 per month. Also to arrive at pension, salary will be average of 60 months last drawn salary instead of earlier rule of last 12 months average salary.

3) Insurance coverage to member increased to Rs.3,00,000

Earlier each member who is part of EPF scheme had a insurance coverage of Rs.1,56,000. This insurance coverage now raised to Rs.3,00,000.

4) EPS contribution from employer raised

Earlier whether your salary was Rs.6,500 or at higher level, employer used to contribute fixed EPS contribution of Rs.541 i.e 8.33% of Rs.6,500. This is increased now to Rs.1,250 i.e. 8.33% of Rs.15,000.

Overall effect on you will be lesser take home salary. Because earlier whoever earning more than Rs.6,500 might contributed 12% of Rs.6,500. But now onward it will be 12% of your salary if you fall under Rs.15,000 and if more than Rs.15,000 then too 12% of Rs.15,000. So more outgo towards EPF and less take home. But do remember that you are indirectly investing rather than spending. So be happy

[Former Member]

Hi,

if you changed PFBAS from 6500 to 15000 you know how system will calculate the PF for both EE and ER

/3FA - 15000/-

/3F1 -  1800/-

/3F3 -  1800/-

/3F5 -  1800/-

/3F6 -  3900/- + 12600/-

i think this is wrong configuration.

[Former Member]

Hi,

See If we change the Constant PFBAS from 6500 to 15000

then where you can maintain the 1800 PF Amount how system know (change of 780 to 1800)

in above exanmple of Ur's /3f1 is fully 1800 but it has to be less of that

It Should be /3f3+/3f4=1800

Correct me If i am wrong

And EDLI also changed to 20% and wer we can do the changes of the same

Regards,

Sajid

[former_member212146]

Hi Radha

If you are talking about PF base amount then Just change the amount in Below given table.

Path is - SM30 - V_T511P -   PFBAS (PF Eligible Amount)

here change the amount from Rs. 6500 to Rs. 15000

then test it .

Cheers

Rabindra Patra

[Former Member]

Hi

Here do we only change the amoutn or also the date.

In my system it is maintained from 01.06.2011 to 31.12.9999

Regards

Geeta

[Former Member]

Geeta,

like Rakesh said SAP will release patch. so kindly wait till they do so.

[Former Member]

Hi

Thanks

So this has not been included in the Income tax rules version 6 of the note released

Fine will wait

Regards

Geeta

[Former Member]

hi geeta,

I was told to do changes in V_T511P  Constant PFBAS field with new date i.e.1.9.2014 after delimiting the old one and then

apply note as and when SAP Releases.

[Former Member]

thanx rabindra.

[former_member201807]

Dear Radha,

If there areany standard change or any notification come thorugh Govt of India, SAP release standard solution.

Wait for few more days, SAp release the sap note.

So no need to change manually.

Regards,

Rakesh 

[Former Member]

thank u sir for ur reply. i ll wait.

Cheers,

Radha.