It’s important to ensure that the correct EPF contribution ceiling is set for each month. Here’s how to check and manage it effectively:
Check Contribution Amount Ceiling
If your employee's monthly salary is 1,500.00, and you have set the fixed EPF contribution amount to 165.00 for the month, this amount will be split across the following payments:
1st Half Payroll
2nd Half Payroll
Bonus
Commission
Correcting an Accidentally Processed 1st Half Payroll
If the 1st Half payroll has been processed by mistake, you can delete the transaction. Since the maximum contribution for the month is 165.00, no EPF contribution will be reflected in the 2nd Half, Bonus, or Commission pay slips.
Example of Contribution Breakdown
If the 1st Half EPF contribution is 82.50, then the 2nd Half payroll will include the remaining 82.50, ensuring the total monthly EPF contribution reaches the ceiling of 165.00.
The total EPF contribution ceiling for a salary of 1,500.00 is calculated as 1,500.00 x 11% = 165.00.
By keeping track of these details, you can ensure the EPF contribution is properly calculated and recorded for the month.