.

PAYROLL
WAGE TYPE
WAGE : Amount / Rate / Number

WAGE TYPE : Basic or HRA or Washing Allowance
or Bus Pass All

Wage Type Group = Basic + HRA + Washing
Allowance etc

Infotypyes = 0008 = Basic Pay
0014 = Recurring Payments and Deduction
0015 = Additional Payments and Deductions

PAY SCALE STRUCTURE
Pay scale information is stored in infotypes 0008, 0014, 0015.
Wage maintenance is stored in IT 0052. Which pay scale or CG
is valid in PST or PSA. Pay scale groupings : PSG for allowances.
These groupings are used to select employees based on their
eligibility compensation benefits.

Pay scale structure means creation of
Pay Scale Type It is particular type of industry for which CAP
applies for ex Chemical or Metal industry
Pay Scale Area The Area for which CAP applies Uppal,
Nacharam
Pay Scale Grade The particular Grade to which allowance applies
Pay Scale Level Levels are divided from the grade for which
allowance applies.
BASIC SETTINGS
Period Parameter - It specifies the period on
which the payroll is run. For ex weekly, Bi
weekly, Monthly, Bi monthly, Quarterly etc.
Data Modifier It specifies the date on which
the payment is made eg. 1
st
, 5
th
, 10
th
etc.
Payroll Area Area in which a group of
employees for whom payroll is run on particular
period and specific date.
Control Records this which control records and
every payroll area have control records.
The payment is mentioned in currency

WAGE TYPES
Time Wage is a type of remuneration is paid for attending work
(hours / months) irrespective of amount for produces
Valuating BWT is used to value your WT, if it depends on some
% of other WT. Say HRA some 20 % of Basic
Wage types : Wage type allows for the assignment of payment
and deductions and the control of pay rolls program. Money
and time units are in the calculation of employee remuneration.
It is based on the companys requirement.. Wage types are
payroll objects used to store in payroll components which
include the amount number and rate. Wage types are
permitted to be stored in pay roll infotypes only if theses added
to the WT group 0008. Transaction PU95 is used to edit WT
groups. You need to assign the WT to respective employee
subgroup grouping and personnel sub area groupings.

.
Primary wage type / Model wage type
/Dialogue Wage type. They are Standard wage
types. It starts with Alphabetic like M,N etc..
They are used to copy and copied one is used in
customizing client requirement. These wage
types can be stored values in WT through the
permissible payroll infotype. These WT entered
for an employee when master data is
maintained.
For Ex MB10 Basic pay, M230 HRA
These wage types can be copied
Primary Wage type Copied Wage
type
MB 10 2SSS
M230 4444



.
Secondary / Technical Wage types. It starts
with (slash / ) - /114 HRA etc.
This wage type cannot possible to copy. It is
generated by the system while running payroll.
The system defines their values and these wage
types are not the part of the employee data
Customer / Copied Wage types It is copied
from the Standard / Model / Primary wage Type.
It starts with Numeric No. only 2sss, 2222, 4g66
Copied wage types are used to meet client
requirements.
All above wage types Can be recognized with
four digit code

RECURRING PAYMENTS
Recurring payments and deductions are
additional wage elements that arent
necessarily used in every payroll period
like holiday pay, transportation allowance,
and Christmas bonuses
ALLOWANCE GROUPS
Allowances groups are defined based on
location.
For ex allowance for Bonus
Uppal - 10%
Nacharam 15%
Amerpeet - 25%




The annual year starts from March 1
st
to February end date.
The PF deduction will be made on Basic + DA
The PF will interest on contributed shares of Rs 12 to 10% fixed by the
Central Govt.
There are three types of eligibilities of deductions
1) The employee whose salary is below
6500/- is eligible for full contribution on the BASIC + DA
2) Whose salary crosses 6500/- it is the
management decision to be full on BASIC + DA
which may be 20000/- 2400/-
3) Whose salary crosses 6500/- it is management
decision will be restricted on 6500/- only i.e 780/-
4) Management will pay on the employees whose amount is 6500/-
are below only
PROVIDENT FUND
PF CONTRIBUTIONS contd.
It is central Act. The applicability is same all over India.
Contributions 12 %-Employee
12% - Employer
1.1%-Admn charges on PF
.5% on EDLI Scheme
.01% Charges on EDLI
25.61% to be paid by the emr to PF
PF Pension Fund
Employee 12%
Employer 3.67% 8.33%
15.67 % 8.33%
PF PENSION ELIGIBILITY contd..
Employee who has contribution of 10
years before 50 / 58 years is eligible for
pension. The 10 years contribution may be
in one company or many companies.
The Pension after 50 years is called
reduction pension i.e will get 60 to 70%
amount and after 58 years is called full
pension i.e will get 100% pension. Once
pension starts who is not eligible for
contribution even he his pension.
The feature for EPF is 40 EPS the default
value is standard -
/ER REF NO /ER PENSION REF NO
EMPLOYEE STATE INSURANCE CORPORATION

The employee whose gross salary is Rs. 15000/-
& below is eligible for ESI benefits.
The contributions is made on earning gross
salary of an employee of that particular month
Contributions
Employee is 1.75%
Employer is 4.75%
Employer has to pay 6.50% to the ESIC dept.
It has two periods April to Sep and Oct to
March

PROFFESIONAL TAX
It is a Central Act but Slabs are differ to
state to state
The area has its own Division, Circle,
Range, Zone & their own certificate no.
etc.
The tax period is from April March
every year
PT SLABS contd..
The slabs are a follows
15000 20000 - 150/-
20000 & above is Rs. 200/- each