Is it official that PF administrative charges have been reduced to 0.85% from 1.10%? Is there an official circular/notification? If yes, please could anyone forward it to me.
From India, Mumbai
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From India, Mumbai
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EPFO Circular on Administrative Charges
With reference to the above circular dated 2nd March 2015, the EPFO has issued a circular regarding the change in Admin Charge (A/c No. 2) for an establishment from the existing 1.10% to 0.85% of Basic Wages + DA + Cash Value of Food Concession, resulting in a reduction by 25 basis points. The amendment is effective from 1st January 2015. As a result of the amendment, the Employer Share of PF has changed from 13.61% to 13.36%.
However, the department has set a limit for minimum charges for A/c No. 2 (Admin Charges on PF) and A/c No. 22 (Admin Charges on EDLI) as given below:
Date of Effect: 1st January 2015
Category of Establishment: At least 1 PF member (Employee)
Before Amendment
- A/c No. 2: Admin Charges on PF: 1.10% of Basic Wages + DA + Cash Value of Food Concession
- A/c No. 22: Admin Charges on EDLI: 0.01% of Basic Wages + DA + Cash Value of Food Concession
After Amendment
- A/c No. 2: 0.84% subject to a minimum of Rs. 500
- A/c No. 22: 0.01% subject to a minimum of Rs. 200
Category of Establishment: Non-functional establishment having no PF member (Employee)
Before Amendment
- A/c No. 2: Admin Charges on PF: Rs. 5
- A/c No. 22: Admin Charges on EDLI: Rs. 2
After Amendment
- A/c No. 2: Rs. 75
- A/c No. 22: Rs. 25
To conclude, if the amount payable for a month falls below Rs. 500 (for A/c No. 2) or Rs. 200 (for A/c No. 22), then Rs. 500 and Rs. 200 will be payable in A/c No. 2 and 22, respectively. Effectively, PF liability will increase for employers with low Aggregate Wages and will decrease for employers with higher Aggregate Wages.
Note: Nothing contained in the above notification shall affect the administrative charges payable in respect of the period up to and inclusive of 31st December 2014.
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From India, Delhi
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With reference to the above circular dated 2nd March 2015, the EPFO has issued a circular regarding the change in Admin Charge (A/c No. 2) for an establishment from the existing 1.10% to 0.85% of Basic Wages + DA + Cash Value of Food Concession, resulting in a reduction by 25 basis points. The amendment is effective from 1st January 2015. As a result of the amendment, the Employer Share of PF has changed from 13.61% to 13.36%.
However, the department has set a limit for minimum charges for A/c No. 2 (Admin Charges on PF) and A/c No. 22 (Admin Charges on EDLI) as given below:
Date of Effect: 1st January 2015
Category of Establishment: At least 1 PF member (Employee)
Before Amendment
- A/c No. 2: Admin Charges on PF: 1.10% of Basic Wages + DA + Cash Value of Food Concession
- A/c No. 22: Admin Charges on EDLI: 0.01% of Basic Wages + DA + Cash Value of Food Concession
After Amendment
- A/c No. 2: 0.84% subject to a minimum of Rs. 500
- A/c No. 22: 0.01% subject to a minimum of Rs. 200
Category of Establishment: Non-functional establishment having no PF member (Employee)
Before Amendment
- A/c No. 2: Admin Charges on PF: Rs. 5
- A/c No. 22: Admin Charges on EDLI: Rs. 2
After Amendment
- A/c No. 2: Rs. 75
- A/c No. 22: Rs. 25
To conclude, if the amount payable for a month falls below Rs. 500 (for A/c No. 2) or Rs. 200 (for A/c No. 22), then Rs. 500 and Rs. 200 will be payable in A/c No. 2 and 22, respectively. Effectively, PF liability will increase for employers with low Aggregate Wages and will decrease for employers with higher Aggregate Wages.
Note: Nothing contained in the above notification shall affect the administrative charges payable in respect of the period up to and inclusive of 31st December 2014.
Regards
From India, Delhi
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Epfo-circular-2 2-mar-2017-pf-e dli-admin-charg es-reduced-waiv ed-wef-1-apr-20 17.pdf