2022-01-24 2310031

2310031 - LWF deduction does not happen for a

terminated employee
Version 1 Type SAP Knowledge Base Article
Language English Master Language English
Release Status Released to Customer Category Problem
Component PY-IN (India) Released On 25.04.2016

Please find the original document at https://launchpad.support.sap.com/#/notes/2310031

Symptom

• LWF is not calculated for employees terminated in middle of the month.

• LWF deductions is not happening for leaver employees.
• Inconsistent LWF for EE terminated in the mid month.
• LWF deduction does not happen for a separating employee.

Environment

• Human Capital Management (HCM)

• SAP ERP Payroll India
• SAP R/3
• SAP ERP Core Component
• SAP ERP
• SAP enhancement package for SAP ERP
• SAP enhancement package for SAP ERP, version for SAP HANA

Reproducing the Issue

1. Terminate an employee in middle of the Month say 28.04.2016

2. Execute the payroll of the employee for April 2016
3. Check INUCD function for wagetype /3W1

Cause

Deduction for terminated employee is based on legal rule

Resolution

• As per legal requirements, for employees belonging to TamilNadu,in the event an employee leaves the
organisation on account of any separation action, LWF contribution is deducted from the employees
account for the period of service in the organisation.
• However for employees belonging to all the other regions except Tamil Nadu, the computation of other
states is based on whether the employee is on the register of the company on the last day of the
Month.
• If the employee belongs to Karnataka, and if the employee is terminated with effect from 28.04.2016,
then LWF deduction will not happen in payroll. If the employee is teminated from 01.05.2016, then
LWF deduction happens for the month of April 2016, as he was actiave at the end of the month, i.e.
30.04.2016
• For the above example , incase the employee belongs to Tamilnadu , and is terminated with effect from

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2022-01-24 2310031

28.04.2016, then LWF deduction will happen when payroll is run for the month of April 2016.

Keywords

/3W1,3W2,/140,Seperation, Seperated, Resigned,Labour Welfare Fund,

Products

SAP ERP Central Component all versions

SAP ERP all versions
SAP R/3 Enterprise all versions
SAP R/3 all versions
SAP enhancement package for SAP ERP all versions
SAP enhancement package for SAP ERP, version for SAP HANA all versions

Other Components

Component Description

PY-IN-PS Public Sector

PA-PA-IN India

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