Why Is Employer's PF Share More By 1.6 Percent

Hi all,

We all know that the PF contributions of the employee and employer are 12% and 13.6% of the basic, respectively. I want to know what the reason is for this extra 1.6% paid by the employer.

One more question - what are the shares of each type of PF, i.e., EPF, PPF, and VPF from this total amount?

Thanks in advance.

Hi,

1.6% PF charges are not recoverable. The breakdown of the 1.6% distribution is as follows:
- Admin Charges: 1.10%
- Inspection Charges: 0.5%
- EDLI Charges: 0.01%

It is proven that these charges are imposed by the EPF Department instead of being divided between the Employee and Employer contributions.

Regards

Dear friends,

The breakdown of the additional 1.61% is as follows:
1. Administration charges on EPF - 1.1%
2. Contribution to EDLI - 0.5%
3. Administration charges on EDLI - 0.01%

If the PF is managed by an exempted Trust, no administrative charges on PF will be remitted. Instead, an inspection charge of 0.18% will be paid. Similarly, in lieu of EDLI, an inspection charge of 0.005% will be remitted instead of administrative charges of 0.01%.

Abbas.P.S