Confused About Voluntary PF Admin Charges? Let's Clarify the Calculation Together

Nijanth Chanthar
Dear Friends, Kindly help me clarify the doubt regarding the admin charges calculation for Voluntary PF (deducted by the Employer).

Salary per Month:
22000 (Basic: 11000, DA: 4400, HRA: 6600)

Description
Employer Employee EPF Contribution 15000 x 12% = 1800
15000 x 3.67% = 551
EPS Contribution 15000 x 8.33% = 1250
EDLIS Contribution 15000 x 0.5% = 75
EPF Administrative Charges 15000 x 0.5% = 75

If an employee wants to deposit VPF of 2000

VPF Administrative Charges
(2000/12%) x 0.5% = 83...

Is this calculation correct? Please clarify the calculation method.

With Regards, Nijanth
Madhu.T.K
The administration charge is payable on the total pay on which the amount of the contribution is calculated. When you are paying contributions based on a higher salary, administration charges should also be calculated on that higher salary.
Madhu.T.K
There is a correction to the above regarding the administration charges. The amount is calculated based on the total pay/salary on which the contribution is payable. Therefore, if an employee opts to pay a contribution at a higher rate but on the same salary, there will be no change in the admin charges. This is because the charges are based on the salary rather than the contribution.
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