The Provident Fund Setup component is used to define the key elements of the Provident Fund, which are used by the other components of the Provident Fund Business Process Chain (BPC).
A typical instance is the definition of the Provident Fund year, in the Record PF Year Definition activity. All the other components of the Provident Fund BPC use this PF year period. Example, the Process PF Interest activity under the PF Administration component uses this PF year period, to compute the PF interest for the PF year. If you require changing the PF year period, you must update this period in the PF Setup component.
The PF Setup component therefore plays the role of a master table, handling the key information; it can be accessed by the other components of the Provident Fund Business Process Chain.
The following activities provide an overview of the PF Set up component:
Recording PF Loan Definition: Through this activity, you can define a Provident Fund (PF) loan. This includes details such as the name of the loan, type of loan whether refundable or withdrawal loan, the number of times the specific loan can be availed, and the PF trust from which the amount will be disbursed.
Whenever a loan is requested, the system refers to this activity before allowing authorization of the specific loan.
Recording PF Trust Definition: Through this activity, you can record the details of a Provident Fund trust. The Provident Fund (PF) trust holds the responsibility of managing the Provident Fund. The different types of PF trusts are Un-exempted Trust, Exempted Trust and Excluded Trust. These establishments are differentiated on the basis of whether they are recognized by the Regional Provident Fund Commission (RPFC) or the Income tax department.
Apart from the PF Trust definition, you can also include the details of the Provident Fund, such as the percentage of the emoluments that can be contributed towards the employee, employer and voluntary contribution account. Further, you can indicate whether the Employee Pension Scheme is applicable or not. You can maintain the history of the Provident Fund trust.
Recording PF Year Definition: Through this activity, you can record the details of the Provident Fund year. The statutory interest rate, in percentage, for this period is recorded as well. At the end of this period, the PF interest is computed and credited to the PF closing balance for continuing members. If the employee separates from the organization in the middle of the PF Year, the PF interest is computed on a pro-rata basis for final settlement.
Recording Pension Fund: Through this activity, you can create master information on pension funds. Important details of the pension fund including name, code, location address, and bank are recorded in this activity. Employer and employee contribution to the fund, and tax details can also be recorded through this activity.
Getting familiar with the activities inside
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Record PF Loan Definition |
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Record PF Trust Definition |
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Record PF Year Definition |
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Record Pension Fund |
