How Should We Adjust Charges to Employers After Reducing Admin Fees for Contractors?

kkkk9999
I work with contractors. I want to know, after reducing the admin charge by PF from 1.10 to 0.85, how should we charge the principal employer? Currently, the principal employer pays 13.61%.
mail8013
It's simple. The previous payment was 13.61%.

With a reduction of Admin charges by 0.25% (1.10% to 0.85%), your new payment should be 13.61 - 0.25 = 13.36%. This is effective from 1-Jan-15. The period for computation of PF is Mar to Feb. So, it is important that you adjust the excess 0.25% that you have already paid for Jan-15 in the Feb-15 month's dues so that your 2014-2015 contribution period has correct figures.

Regards, A.B.
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