To calculate and deduct the employee and employer contributions to the provident fund. The system reads the Infotype 0196 Employees’ Provident Fund and uses the data to calculate the percentages of contribution. The contributions are then submitted to the EPF Board.

The following actions need to be carried out :

• Infotype 0196 Employees‘ Provident Fund must be maintained
• Set up the EPF payee details and employer reference number via IMG.
• Set up the company rate via IMG

 Maintain EPF-related payroll schemas and rules before running payroll.

The processing steps for EPF are:

• Read the data in Infotype 0196 Employees’ Provident Fund and check that it exists.

• Check whether the employee currently contributes to EPF.

• Read the EPF statutory and company rates tables.

• If the employee is contributing at the statutory rate, calculate his/her contribution.

If the employee is contributing at the company rate, check to see if the company rate is greater than or equal to the statutory rate.

If it is, then calculate employee contribution.

Else, payroll will not process the employee.

• If an amount is entered, then the personal rate can be omitted OR can be less than the statutory rate. But the combination of personal rate and amount must be greater than or equal to the statutory rate.

• For retro-calculations, the difference is brought forward and multiplied by the current period’s prevailing rate e.g. salary increment.

• All data is then stored in the relevant payroll tables.