PF contribution is calculated on PF wages, not gross salary. PF wages typically include Basic and Dearness Allowance. If PF wages exceed Rs 15,000 per month, the employer may cap PF contributions at Rs 1,800 (12% of Rs 15,000) or continue on actual wages per company policy. Zoho Payroll lets you configure the PF wage cap in PF Settings, and the system applies it consistently across all eligible employees.
Employer and employee PF contributions must be remitted to EPFO by the 15th of the following month via ECR (Electronic Challan cum Return). Zoho Payroll generates the ECR file in the correct format after each pay run, including UAN, name, PF wages, employee contribution, and employer contribution per employee. This file is uploaded directly to the EPFO Unified Portal.
Employees can contribute more than 12% of PF wages voluntarily. This is called Voluntary Provident Fund (VPF). Zoho Payroll supports VPF as an additional deduction component, and the extra contribution goes into the EPF account. VPF contributions are eligible for Section 80C deduction up to the Rs 1.5 lakh annual limit.
PF (Provident Fund) in Zoho Payroll is the mandatory retirement savings deduction under the EPF Act. Both employer and employee contribute 12% of PF wages. Zoho Payroll calculates contributions automatically each month, generates the EPFO-compatible ECR challan file, and shows deductions on the payslip.
In Zoho Payroll’s PF Settings, you can choose to cap PF contributions at 12% of Rs 15,000 (Rs 1,800) or compute on actual PF wages. The cap applies to both employer and employee contributions. The EPS employer contribution is always capped at 8.33% of Rs 15,000 regardless of actual wages.
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