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V_T7UNPAD_PFST - Define Contribution Status for Pension Fund

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In this IMG activity, you can specify whether an employee can contribute towards a Pension Fund.

Employees can contribute towards different Pension Funds. Details regarding employee and employer contribution can be maintained in NPO Pension Fund infotype (0961).

Payroll for NPO uses pension remuneration tables published by the UN as the basis for pension related calculations. The table mentions the pensionable remuneration for employees belonging to different pay scale information.

In the standard system, employee contribution towards the pension fund is calculated as 7.9% of his or her pensionable earnings. Organizational subsidyis calculated as 15.8% of the employee's pensionable earnings. Hence, the total contribution is 23.7% of the pensionable earnings.

1. Select New Entries.
2. Enter the Pension Fund status and description.
3. Select the PF Con. indicator if the employee can contribute towards the Pension Fund for this status.
4. Save your entries.

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