Confused About New EDLI and Admin Charges for EPF? Let's Clarify Together

Hello, I am hereby putting a query regarding EDLI & Admin amount to be calculated for EPF. Previously, it was 1.36% as per norms:

In details:
- .85%
- .50%
- .01% or 200/- fixed.

Now, as per the latest amendment, they said .85% is decreased to .65% & as per Central Govt Notice vide S.O 828 (E) dated 15.3.2017 has determined that no sum shall be payable by the Employer towards the administration of the Employee Deposit Linked Insurance Scheme 1976.

Can you please clarify the above? Does it mean that an Employer has to consider only .65% of Basic or 1.15% (.65% + .50%) of Basic?

Kindly clarify.

Dear Susmit,

PF Administration Charges with effect from 1st April 2017 are 0.65%. Deposit Linked Insurance Fund Contribution is 0.50%. Administration Charges on DLIS from 01.04.2017 are 0.00%. The total amounts to 1.15%.

Hope this is clear to you.

Regards,
Suresh

Query Regarding EDLI Exemption and Benefits

Since 1990, our company was exempted from EDLI under U/P 28(7). Refer to the EPFO internal office order dated 6/2/2017; the concern refused to grant further exemption. From February 2017 onward, we started depositing the EDLI amount in Account 21 to EPFO. During this period, one of our employees passed away on 15/6/2017. He was a continuous member of EPF from 1992 to January 2017 with LIC and from February 2017 until his death with EPFO. Now, EPFO does not agree to pay 100% benefit and claims that since you engaged with us in February 2017, and the deceased had not completed one year with EDLI contributions, 100% benefit cannot be paid to the deceased.

Regards, V.K. Sharma

[Phone Number Removed For Privacy-Reasons] Brightstar Telecommunications India Limited - Ludhiana

What are the EDLI inspection charges?

Dear Chetan, in case the establishment is exempted under the EDLI Scheme, inspection charges at 0.005%, with a minimum of Re 1/-, are payable in place of admin charges, as per 26(6) of the EPF Scheme. There are EPF inspection charges for exempted establishments, which are currently 0.18%.

EPF inspection charges payable by the employers of exempted establishments

Period Rate Reckoned on

01.11.1952 to 31.12.1962: 0.75% on total employees' and employer's contributions payable at 6.25%.

01.01.1963 to 30.09.1964: 0.75% on total employees' and employer's contributions payable at 6.25%.

0.60% on total employees' and employer's contributions payable at 8%.

01.10.1964 to 31.07.1998: 0.09% on total pay on which contributions are payable.

01.08.1998 onwards: 0.18% on total pay on which contributions are payable.

Regards, Suresh

I have one question.

My monthly is - $20,000.
Monthly earned basic - $14,000.
Then what is my EPF wages?
What about EPS wages?

Hi Chetan,

Your query is not clear; however, I submit as under:

EPF salary/wages ceiling is Rs. 15,000/-; however, the company may allow deducting PF on your actual earned Basic salary with joint consent (employee & employer).

Family Pension & DLIS wage ceiling is a maximum of Rs. 15,000 or the actual earned Basic salary, whichever is higher.

Regards,
Suresh

What is the maximum amount paid by the employer for administrative charges under account number 22?