PY-HK Contribution Plan (0346) (SAP Library

PY-HK Contribution Plan (0346)

Definition

This infotype stores the contribution portion of a Mandatory Provident Fund (MPF) scheme or occupational retirement (ORSO) scheme that the employee enrolls in.

Structure

When an employee enrolls in a scheme, you enter the enrollment details for the contribution portion of the scheme.

Employees’ income are categorized into three levels as below in the infotype:

Normal contribution

You can choose the default contribution levels or specify alternative levels. Use the Hong Kong payroll implementation guide (IMG) to set the default contribution levels.

Less than minimum relevant income

This section specifies the contribution levels if the employee's relevant income is less than the minimum relevant income.

For this to take effect, you must have defined the income range for the contribution plan in the Hong Kong payroll IMG. Go to Payroll Hong Kong ® Contribution Plan ® Define contribution plan special rules.

You can choose the default contribution levels or specify alternative levels.

Greater than maximum relevant income

This section specifies the contribution levels if the employee's relevant income is more than the maximum relevant income.

You can choose the default contribution levels or specify alternative levels.

Note

For Mandatory Provident Fund (MPF), values of the minimum and maximum relevant income are legally defined in the system.

For optional contributions to MPF besides mandatory, you can specify them as:

Below Maximum Percentage	A percentage based on the portion of the employee’s monthly relevant income below the maximum contribution range
Excess Maximum Percentage	A percentage based on the portion of the employee’s monthly relevant income in excess of the maximum contribution range
Flat Amount	A fixed amount from the employee’s relevant income which the employee wishes to contribute. If this amount is lower than mandatory contribution, the latter is used instead in payroll.
Additional Amount	A fixed amount per payroll period which the employee wishes to contribute to MPF as an addition to mandatory contribution. This amount is deducted from the employee's salary.

Integration

Each contribution plan has a matching Entitlement Plan infotype (0347) to record the benefits accrued when the retirement scheme matures.