Confused About EPF Admin Charges? Let's Figure Out Why There's a Discrepancy!

One of the employees receives a salary of 11600. When I calculate his EPF (12% employee share, i.e., 1392/-; 8.33% EPS, 966/- employer share; difference 426 employer share; EPF admin charges at .85% amounting to 98.60 (rounded to 99/-); EDLI (58/-) and EDLI inspection 1/-. Totaling to 2941.76, rounded to 2942/-. However, when I generate ECR, it comes to 2971/- (EPF admin charges .128 instead of 99/-). Why?

Understanding EPF and EDLI Administrative Charges

Your calculation seems fine, but I think they are recovering a minimum administrative charge.

In the case of EPF Admin Charge:

The monthly payable amount under EPF Administrative charges is rounded to the nearest rupee, and a minimum of Rs 500/- is payable. Note: If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-.

In the case of EDLI Admin Charge:

The monthly payable amount under EDLI Administrative charges is rounded to the nearest rupee, and a minimum of Rs 200/- is payable. Note: If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 25/-.

See more on Indian Labour Laws & Shram Suvidha Simplified at http://www.shramsamadhan.com/

EPF admin charge is calculated on total employees consolidated for a/c no 02 at 0.85% (minimum 500/-), for a/c no 21 at 0.05%, and for a/c no 22 at 0.01% (minimum 200/-).

Please let me know if you need any further clarification or details.