With access to modify individual employee profiles, you can apply the right PF deduction rates for the right profile and avoid miscalculations. Zoho Payroll is built to handle all these computations for you. It gives you the flexibility to include the earning components you need to consider for PF computation. You can restrict the employer’s contribution, you can prorate the employee’s contribution based on the number of days worked, and in cases where employees choose to contribute more to PF, you can enrol employees for VPF. Beside these, there are other variable factors like including PF as part of your employee’s CTC, and computing PF on a prorated basis. Employees, on the other hand, wish to reduce their taxable income and contribute more to their retirement chest through VPF. However, the Government allows employers to limit their contribution to a fixed amount of ₹15,000 of the basic pay for employees drawing a higher paycheck. The standard deduction rate for PF requires that the employer and employee each contribute 12% as part of the employee’s retirement chest. To ensure that the right PF deductions are applied, the right inputs and deduction criteria must be set even before you process the payroll. In this article, we will look at the features within Zoho Payroll that help you with the four statutory regulations: Employees’ Provident Fund (PF), Professional Tax (PT), Labour Welfare Fund (LWF), and Employee State Insurance (ESI).Įvery organisation has its own compensation structure, which affects the amount to be deducted from each paycheck. This is where payroll software like Zoho Payroll can help businesses get more efficient. Not only does it ensure accuracy in computations and deductions, it can adapt quickly to changing tax laws and payroll inputs. This means that you can easily maintain a clean statutory record at all times. This is a tedious task especially if you have to do it often. However, this means that every time a new budget announcement is made or a salary revision is processed, someone has to manually change the formulas to ensure that the right deductions will be made and no other dependent inputs will be altered. Many businesses manage these payroll activities through spreadsheets, which seem easy to work with. Staying compliant is challenging because it involves numerous activities like gathering inputs on time, setting deduction rules, and adapting to new regulations. One crucial component of payroll is the need to stay compliant with the four statutory regulations: EPF, ESI, PT, and LWF.

The state authorities determine the rate of contribution and frequency of contribution towards Labour Welfare Fund.Ĭlick on Download button to Download Labour Welfare Fund LWF Calculator in Excel.For businesses in India, managing payroll is a challenging task because of the various moving parts involved. Labour Welfare Fund (LWF) is a statutory contribution.

Gujarat labour welfare fund form a 1