Understanding EDLI Admin Charge: Is It Based on Total Paid Wage or Just PF Wage?

EDLI Admin charge of 0.005% is applicable to which amount - total paid wage or PF wage, i.e., 12% of basic.

EDLI Admin charge of 0.005% is wrong; in fact, it is 0.5% of basic. The PF contribution is 12% of Basic salary from both the employee and the employer. Apart from this, an employer also has to pay some administration charges. Let me explain the various accounts of the PF challan.

A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account

PF admin charge = Employer has to pay 1.1% of basic.
EDLIS: Employer has to pay 0.5% of basic.
EDLIS admin charge: Employer has to pay 0.01% of basic.
Total additional percentage employer has to pay: 1.61% of basic.
So, the employer actually has to pay 13.61% of Basic, and the employee has to pay only 12% of basic.

Employees' complete 12% goes to PF account, while employer contributions' 8.33% goes to the Pension fund and 3.67% goes to the PF fund.

I hope this clarifies things for you. Seniors, please correct me if I am wrong.

Hemant Agarwal
Email: hemant.dev@gmail.com

Dear arn2007,

EDLI premium and administration charges are based on the EPF applicable salary, subject to an individual salary ceiling of Rs. 6500/-.

Abbas.P.S

I have heard that if we have taken the EDLI policy from LIC, then the EDLI Admin Charge is 0.005%. However, if we have paid the EDLI amount directly to the EPF department, then the EDLI admin charge to pay is 0.01% of the basic amount. Please update me on this.

Thank you.