Which payment is subjected to EPF

By default, all monetary payment made by a company to the employee is subjected to EPF however some are don't based on the type of wages. In Swingvy all the default payroll items has been set either it is subjected to EPF or not based on the compliance stated by the EPF body. 

Payment liable for EPF contribution:

  1. Salary
  2. Allowance
  3. Incentive
  4. Wages for study leave
  5. Payment for unutilised annual or medical leave
  6. Commission
  7. Arrears of wages
  8. Other payment under contract of service or otherwise
  9. Bonus
  10. Wages for half day leave
  11. Wages for maternity leave

 

Payment that is not liable for EPF contribution

  1. Service charge
  2. Retirement benefit
  3. Any other remuneration or payment as may be exempted by the minister
  4. Overtime payment
  5. Retrenchment, temporary lay-off or termination benefit
  6. Gratuity
  7. Any travelling allowance or the value of any travel concession

 

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