Employees' Provident Fund 
Purpose
To calculate and deduct the employee and employer contributions to the provident fund. The system reads the infotype Employees’ Provident Fund (0196) and uses the data to calculate the percentages of contribution. The contributions are then submitted to the EPF Board.
Prerequisites
The following actions must be performed:
- Infotype Employees' Provident Fund (0196) must be updated.
- Set up the EPF payee details and employer reference number using the Implementation Guide of the Payroll Malaysia component. Choose
EPF ® Setting Up EPF Payee and Employer Reference Number.
- Set up the company rate in the Implementation Guide of the Payroll Malaysia component. Choose
EPF ® Setting Up Company Rate.
- Update the contract type of expatriates in infotype Organizational Assignment (0001).
Update EPF-related payroll schemas and rules before running payroll.
Process Flow
The processing steps for EPF are:
- Data in infotype Employees’ Provident Fund (0196) is read.
- Data in infotype Organizational Assignment (0001) for employees with contract type Expatriate is read.
- A check to determine whether the employee currently contributes to EPF is carried out.
- The EPF statutory and company rates tables is read.
- If the employee is contributing at the statutory rate, the employee's contribution is calculated.
- If the employee is contributing at the company rate, a check to see if the company rate is greater than or equal to the statutory rate is carried out.
- If it is, then the employee contribution is calculated.
- Otherwise, 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, for example, salary increment.
- All data is then stored in the relevant payroll tables.