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Pension Payment Payroll India

Former Member
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Dear Seniors,

We are using payroll India. My client want to pay pension to some retired senior employees. Can any of you explain the configuration steps, please guide me with the menupaths. If the basic pension amt is taxble then what should we do?

Regards

Pratyush

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hello Pratyush,

there is one standrad function 'COMPUTE_YEARS_BETWEEN_DATES' which computes age of

the employee and if its more than 58 years then pension contribution will not happen.

This is getting called inside the PF payroll function INEPF, so if u want pension contribution for

the guys who passed 58 years of age then u need to bypass this logic (Probably u cn check with

ur abaper to do this ).

Second things is pension is employer contribution so its not being considered for employee

taxable part.

Regards,

Praveen

Former Member
0 Kudos

Hi Praveen,

I think you are talking about the statutory pension through pension trust. After ataining 58 years of age the person whoever contributed towards pension will be eligible to receive pension that is ok.

My requirement is different, my client want to pay monthly pension to few senior retired officers from their own resources.

Please clarify.

Regards

Pratyush

Former Member
0 Kudos

Hi Pratyush,

You can configure the same under IT0015. If the pension is paying through IT0015, then the tax will be calculated automatically.

Regards

Mohan

Former Member
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Then u do it through IT0014/0015 and cumulate the wage type into irregular payment (/125) if u want to consider it as taxable amount.

Edited by: Praveen-Sapping in SAP World on Mar 31, 2009 11:48 AM

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

1. Create a Payment WT for the Pension Payment thru IT0014/IT0015

2. Maintain the cumulation class with Regular Income /124

3. Maintain the Wt in view V_T7INA9

If you need to prorate the Wt you can create a new PSG & PSL

and maintain in IT0008

Regards,

Hemant V. Mahale