New EPF Administration Charges from April 2017: What Does This Mean for Your Business?

Dear Friends and Seniors,

This is for all of your information: the Government has fixed PF Administrative charges at 0.65% of pay, subject to a minimum of Rs. 500 per month per establishment starting from April 1, 2017. In the case of non-functional units, the monthly minimum charge will be Rs. 75. There will be no charges under EDLI. A copy of the notification dated March 15, 2017, regarding this matter is attached.

Hope this information is helpful to all of you.

Can anyone explain according to the new amendment from PF... No charges under EDLI mean A/c21 & A/c22 will be no more? Or do we have to contribute a minimum amount?

EDLI A/c 21 & A/c 22 will no longer be in effect from 01/04/2017.

Dear sir,

Please note that the employees' deposit link insurance has changed account number 21 from 0.50% to 0.65% or Rs. 500/-, whichever is higher. Account number 022 EDLI administration charges remain the same at 0.01% or Rs. 200, whichever is higher. I believe this is the correct interpretation of the gazette notification.

With regards,
Shashi Pandey

A/C#2-PF Admin Charges at 0.65% or Minimum Rs500/-, whichever is higher, from 01-04-2017 (till 31-03-2017 at 0.85% or Minimum Rs500/-, whichever is higher).

A/C#22 EDLI Admin Charges - No sum is payable/NIL from 01-04-2017 (till 31-03-2017 at 0.01% or Minimum Rs200/-, whichever is higher).

Dear All,

EPF Admin Charges have been reduced from 0.85% to 0.65% starting from 1st April 2017. This reduction applies only to Admin charges, which are at 0.85% of the gross EPF wages and not to insurance admin charges.

Hopefully, this clarification is now clear to everyone and will be helpful.

I agree with Mr. Srinath.

Here are the full details of the rates effective April 1, 2017:

A/c 1 EE (Employee Contribution) - 12%
A/c 1 ER (Employer Contribution) - 3.67%
A/c 2 (Administrative charges) - 0.65% with a minimum of Rs. 500
A/c 10 (Pension Fund) - 8.33%
A/c 21 (EDLI) - 0.5%
A/c 22 (Administrative charges for EDLI) - 0%
Total - 13.15% with a minimum of Rs. 500 for A/c 2

As per the notification dated 15/03/2017, it is clear that admin charges for account number 2 is 0.65% effective from 01/04/2017. However, regarding account number 22 (EDLI admin), it is not clear whether functional and non-functional units are charged at 0%. Please clarify the EDLI admin charges.

For non-functional establishments having no PF contributing members - no sum is payable/nil contribution towards EDLI admin charges (AA/C#22).

For establishments having PF contributing members - no sum is payable/nil contribution towards EDLI admin charges (AA/C#22) from 01-04-2017 until further notice.

Both for Functional and Non-Functional establishments, no sum is payable towards EDLI Admin Charges from 01-04-2017.

EDLI Admin Charges (A/C # 22) for both Functional & Non-Functional Establishments with effect from 01-04-2017 - No sum is payable/Nil until 31-03-2017 at 0.01% on EDLI wages or Rs. 200/-, whichever is higher.

I think, the 0.65% part is for the EDLI A/c – 21 which is increased form 0.50% to 0.65%, As it has been written in the Gazette that in order to meets the normal administration expenses(that means they need sufficient fund to meet those expenses), So they have increased the rate from 0.50% to 0.65%. Please confirm anyone

EDLI charges are zero from April 1, 2017.

EDLI Admin charges are Nil. However, what about EDLI Inspection Charges?

Thanks

Total Contribution towards EPF is as follows:

Account #01 - 12+3.67%
Account #02 - 0.65% (with a minimum of 500)
Account #10 - 8.33%
Account #21 - 0.5%
Account #22 - Nil

Total - 25.15%, which was previously 25.36%, reduced by 0.21% from the initial percentage.

Regards,
Anand
Officer HR & Admin

Dear Sir,

The administration charges of Account Number 21 are 0% with effect from 01.04.17. Would you please confirm?

Total Contribution towards EPF is as follows:

Account #01 - 12.3.67%
Account #02 - 0.65% (with a minimum of 500)
Account #10 - 8.33%
Account #21 - 0.5%
Account #22 - Nil

Total - 25.15%, previously 25.36%, reduced by 0.21% from 25.36%.

Regards,
Sunil Kumar
9991914666

What will be the EDLI admin inspection charges?

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Certainly! The charges for EDLI admin inspection vary based on the scope and requirements of the inspection. Would you like more specific information or details regarding the charges for the EDLI admin inspection? Feel free to provide more context so I can assist you better.

Yes, I also have the same doubt. Many of the contractors are still contributing to Acc 22 EDLI admin charges. Additionally, it has not been removed in the preparation of the challan in the EPFO Employer login. Can anyone clarify?

Ok. It is not removed, but you do not have to fill the EDLI administrative charges anymore because these charges are levied.

In light of the amendment dated March 22, 2017, employers who have made administrative changes on old rates, i.e., Account 2 @ 0.85% and a minimum of Rs 200/- from April 2017, may make adjustments in Account No. 2. Or, does it require the permission of the EPF department?

A/c 1 EE (Employee Contribution) - 12%
A/c 1 ER (Employer Contribution) - 3.67%
A/c 2 (Administrative charges) - 0.65% with a minimum of Rs. 500
A/c 10 (Pension Fund) - 8.33%
A/c 21 (EDLI) - 0.5%
A/c 22 (Administrative charges for EDLI) - 0%
Total - 13.15% with a minimum of Rs. 500 for A/c 2

Sir, can I follow the above percentages to prepare ECRs from 01.04.2017?

Dear HR Professionals,

I just want to know if the following statement about EPF Contribution is correct. If it is correct, kindly reply to me.

Total Contribution towards EPF is as follows:

Account #01 - 12+3.67%
Account #02 - 0.65% (with a minimum of 500)
Account #10 - 8.33%
Account #21 - 0.5%
Account #22 - Nil
Total - 25.15%, which is a reduction from the previous 25.36% by 0.21%.

Thanks & Regards,
Shakir Hussan
Sr. Executive (HR/Admin)
P.R. Fasteners Pvt. Ltd.
Mobile No. [Phone Number Removed For Privacy-Reasons]

As per the notification dated 15/03/2017, it is clear that admin charges for account number 2 is 0.65% effective from 01/04/2017. However, regarding account number 22 (EDLI admin), it is not clear whether functional and non-functional units are at 0%. Please clarify the EDLI admin charges.

Dear Shekar,

For both Functional and Non-Functional - EDLI Account #22, no sum is payable until further notice.

A/C:2 - PF Admin Charges @ 0.65% or Minimum Rs500/- whichever is higher from 01-04-2017. (up to 31-03-2017 @ 0.85% or Minimum Rs500/- whichever is higher).

A/C#22 EDLI Inspection Charges - No sum is payable / NIL from 01-04-2017 (up to 31-03-2017 @ 0.01% or Minimum Rs200/- whichever is higher).

The above information is correct or incorrect. Please inform anybody.