Understanding Employer's Extra 1.6% PF Contribution: What's the Reason Behind It?

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.

Shares of Each Type of PF

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.

PF Charges Breakdown

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

Breakdown of the Additional 1.61%

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

Regards,
Abbas.P.S