In SumoPayroll, Provident Fund (PF) is calculated based on the sum of Basic Pay + PF Applicable Allowances. Both employee and employer contributions are computed as per statutory norms, and the calculation may vary based on the PF settings configured in the employee’s payroll profile.
Employee PF Contribution:
12% of (Basic Pay + PF Applicable Allowances)
Employer PF Contribution:
13% of (Basic Pay + PF Applicable Allowances)
PF Contribution Limit:
The PF contribution limit is determined based on the option selected in the employee’s payroll settings.
Note: Changes in PF settings directly affect salary structure and deductions. Review configurations carefully before updating.