Administrative Charges to EPF Reduced: Can We Recover Extra Payments Made?

Recently, the PF Department announced a change in administrative charges (w.e.f 1-1-2015) from 1.10% to 0.85%. However, for January and February, companies may have already paid the amount, right? Is there a mechanism to get the extra money paid to PF?

Dear Seniors, we are currently in a dilemma on how to reclaim the additional admin charges that have already been paid for the past two months.

Regards,
Upender
HR

It is extremely cumbersome to claim back the excess paid to the government. In that case, the only remaining possibility is that of adjustment. It, therefore, seems logical that you pay the minimum charges as specified until the excess paid is liquidated.

Hi, could anyone please explain the bifurcated calculation of the revised administrative charges on EPF here.

Regards,
Harpreet Walia

There is a saving of lakhs of rupees for many employers that I know. Also, it is not a question of a small amount or a large amount. When the government comes out with a decision that has a retrospective effect, why should one not exercise their legal right? Adjustment is possible on the portal while uploading ECR.

It is not a matter of a small or large amount. Any amount paid in excess or less can be adjusted or paid against onward dues, but only in that particular head. For example, if an amount is paid erroneously less in account 2, it can be remitted in account 2 only. Similarly, if paid in excess, it can be adjusted accordingly.

Regards,
P K Sharma

My understanding is that it comes to your ₹150 for every ₹100,000 in salary paid. If it comes automatically, that's fine. If you have to fight for it or run after the department, it may not be worth it.

Government Policy on Excess Payments

The government will never take more than what is due. Excess payment may not be paid back in cash, but adjustment is always permitted.