PF Limit and Pro-Rata PF Calculation

The PF Limit under Statutory settings decides the maximum wage on which the system calculates Provident Fund (PF).

The PF limit has been updated to ₹25,000 for all accounts. The system now calculates PF on wages up to ₹25,000.

This guide explains how to:

• Continue with the revised ₹25,000 PF limit

• Change the PF limit back to ₹15,000

• Calculate PF on a pro-rata basis using the PF Adjustment facility

Option 1: Continue with the ₹25,000 PF Limit

No action is required, as the revised PF limit is already applied.

Option 2: Change the PF Limit to ₹15,000

Path: Login into Cloud Portal → Settings → Payroll → Pay Settings → Statutory.

Step 1: Open Statutory Settings

Step 2: Set the PF Limit

Option 3: Calculate PF on a Pro-Rata Basis

To calculate PF on a pro-rata basis, use the PF Adjustment facility.

Path: Login into Cloud Portal→ Settings → Payroll → Salary Components → Deductions.

Step 1: Open Salary Components

Go to Cloud → Settings → Payroll → Salary Components → Deductions.

Step 2: Create the PF Adjustment Component

Click PF Adjustment next to the Provident Fund Amount component once to create the PF Adjustment (ADJPPFAMOUNT) component for all categories.

Important: If a component with the field name ADJPPFAMOUNT already exists for a category, the system does not create it again.

Step 3: Calculate the Required PF Amount

Calculate the pro-rata PF amount for each employee, with help from your Pocket HRMS consultant if required.

Step 4: Run the Payroll

Run the payroll as usual so the system calculates PF based on the current Statutory settings.

Step 5: Find the Difference

Compare the system PF amount with the required PF amount to find the difference.

System PF Amount	Enter in PF Adjustment
Higher than the required amount	The difference as a negative value
Lower than the required amount	The difference as a positive value

Example: If the system calculates ₹3,000 and the required PF is ₹2,360, enter -640 in PF Adjustment.

Step 6: Enter the Adjustment Amount

Enter the PF Adjustment amount using either method below.

Method 1: For One Employee

Go to Cloud → Employee Profile → Payroll → Monthly Input, select the month, click View/Edit and enter the amount in PF Adjustment.

Method 2: For Multiple Employees

Upload the PF Adjustment amounts using Bulk Monthly Input.

Step 7: Reprocess the Payroll

Reprocess the payroll so the PF amount is updated as per the adjustment entered.

Important: Verify the PF amounts before finalising the payroll.

For any queries, contact your Account Manager or write to [e-mail]