Permanent Workman in SAP – AG dt 14.09.2023
The role of Permanent Workmen in public sector employment has evolved, and with these changes comes a need for updated procedures to manage their employment status within the SAP system. The new directive from the Accountant General Punjab introduces a set of guidelines to ensure that the hiring and management of Permanent Workmen are conducted in a manner that adheres to legal requirements and promotes effective administration. This article explores these new procedures, outlining best practices for implementation and offering practical advice for financial administrators.
Understanding the New SOPs for Permanent Workmen
The new SOPs introduced on September 14, 2023, focus on various aspects of managing Permanent Workmen, from initial hiring to ongoing administration. Here’s a detailed look at these procedures:
1. Definition and Rights of Permanent Workmen
Under the new SOPs, employees who have been working under work-charged, contingent-paid, or daily-wage arrangements and have continuously performed their duties for more than nine months are considered Permanent Workmen. These employees are entitled to the rights and benefits as per the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and the Workman Compensation Act, 1923.
Key Rights for Permanent Workmen Include:
- Job Security: Permanent Workmen enjoy greater job security compared to contingent or daily-wage employees.
- Legal Protections: They are entitled to protections under the relevant labor laws and compensation acts.
2. Submission of Change Form (SOURCE-01 Form)
For employees being designated as Permanent Workmen, the department must complete and submit a SOURCE-01 Form. This form must include several documents and certifications to comply with the requirements set by the Finance Department.
Required Documents Include:
- Appointment Orders: Formal documentation confirming the employee’s status as a Permanent Workman.
- Charge Report: A report confirming the employee’s assignment as a Permanent Workman.
- Medical Fitness Certificate: Proof of the employee’s physical and mental fitness for the role.
- Service Book: A record of the employee’s service history.
- CNIC Copy: A copy of the employee’s National Identity Card.
- Bank Account Verification Certificate: Verification of the employee’s bank account details by the concerned bank branch.
3. Processing the SOURCE-01 Form in SAP
The Senior Auditor will use the SAP T-CODE PA30 with the action “Infotype-08” and wage type “Regular 0063, Adjustment 5502 against G/L A0116F” to process the SOURCE-01 Form.
Steps for Processing the SOURCE-01 Form:
- Enter Employee Data: Input the required employee details into SAP using the T-CODE PA30.
- Update Infotype-08: Ensure that all information related to the employee’s new status is correctly updated in Infotype-08.
- Apply Wage Type: Assign the appropriate wage types and adjust the G/L account as specified.
4. Timeliness of Processing
The SOURCE-01 Forms must be processed in the SAP system before running Regular or Supplementary Payrolls. Timely processing is crucial for ensuring that the Permanent Workmen’s data is correctly reflected in payroll calculations.
Best Practices for Timely Processing:
- Plan Ahead: Ensure that all forms and documents are collected and reviewed well before the payroll deadlines.
- Schedule Regular Checks: Regularly review the processing schedule to ensure all required actions are completed on time.
5. Wage Rates and Payment Procedures
Permanent Workmen’s wages must be paid according to the wage rates issued by the Finance Department under the Punjab Minimum Wage Act, 2019. Ensuring compliance with these rates is essential for lawful and fair compensation.
Wage Payment Considerations:
- Adhere to Wage Rates: Follow the minimum wage rates as specified in the latest Finance Department notifications.
- Ensure Accurate Payments: Regularly verify that wage payments are correct and comply with the legal requirements.
6. Reporting and Verification Procedures
Satisfactory Report Submission:
- Submission of Reports: The controlling officer or DDO must submit a satisfactory report for all Permanent Workmen in AG office before the 19th of every month.
- Verify Report: The payroll section must verify the satisfactory report for accuracy before executing the payroll.
Action for Discrepancies:
- Address Issues Promptly: Resolve any discrepancies or issues identified in the satisfactory report before processing payroll.
Sloppage of Wages:
- Submit Change Form: The controlling officer or DDO must submit a change form (SOURCE-PA03) for stopping the wages of a Permanent Workman, if necessary, before the monthly payroll.
7. EOBI Deductions and Reconciliation
Mandatory EOBI Deductions:
- Deduct 1% EOBI: Ensure that a 1% EOBI deduction is applied under Adjustment head G06322 wage type Regular 3685.
Regular Reconciliation:
- Reconcile Expenditures: Regularly reconcile expenditures with the department to ensure accurate financial records.
Best Practices for EOBI Deductions and Reconciliation:
- Monitor Deductions: Regularly check that EOBI deductions are correctly applied and reported.
- Maintain Accurate Records: Keep detailed records of all financial transactions for audit and reconciliation purposes.
Conclusion
The September 14, 2023, directive from the Accountant General Punjab outlines critical procedures for managing Permanent Workmen in the SAP system. By understanding and implementing these procedures, financial administrators can ensure compliance with legal standards, maintain accurate employee records, and manage payroll processes effectively.
Summary of Best Practices
- Define Permanent Workman Status: Recognize employees as Permanent Workmen after nine months of continuous service.
- Complete Required Documentation: Ensure that the SOURCE-01 Form and supporting documents are submitted correctly.
- Process Forms in SAP: Use T-CODE PA30 to update employee information and apply the appropriate wage types.
- Timely Submission: Process SOURCE-01 Forms before payroll runs and submit reports on time.
- Adhere to Wage Rates: Follow the Punjab Minimum Wage Act, 2019 for wage calculations.
- Verify and Reconcile: Ensure satisfactory reports are verified and reconcile expenditures regularly.
- Manage EOBI Deductions: Apply mandatory EOBI deductions and maintain accurate records.
By adhering to these best practices, you can effectively manage Permanent Workmen in the SAP system, ensuring smooth administrative operations and compliance with regulatory standards. For additional information or assistance, please refer to the detailed guidelines issued by the Accountant General Punjab or consult with your financial administration team.
