Re-Calculation of PF for arrear LOP

The payroll system now automatically recalculates Employee Provident Fund (EPF) contributions when arrear Loss of Pay (LOP) is processed. Earlier, while salary components were adjusted for arrear LOP, EPF contributions were not recalculated proportionately. This enhancement ensures EPF calculations are updated based on the revised wages after LOP adjustments, improving accuracy and statutory compliance.

How it Works

When arrear LOP is identified during payroll processing:

• The system recalculates EPF-eligible wages based on the revised salary after the LOP deduction.

• EPF contributions for both employee and employer are recalculated proportionately according to the updated EPF wages.

• The updated EPF values are automatically reflected in the payroll summary, pay slips, and statutory reports.