EDLI Admin charge of 0.005% is applicable to which amount - total paid wage or PF wage ie. 12% of basic
From India, Mumbai
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From India, Mumbai
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Clarification on EDLI and PF Contributions
EDLI Admin charge of 0.005% is incorrect; in fact, it is 0.5% of the basic salary. The PF contribution is 12% of the basic salary from both the employee and the employer. Apart from this, an employer also has to pay some administration charges. Let me explain the various accounts of the PF challan.
- **A/c No 1:** PF Contribution Account
- **A/c No 2:** PF Admin Account
- **A/c No 10:** EPS Account
- **A/c No 21:** EDLIS Account
- **A/c No 22:** EDLIS Admin Account
Employer's Contribution Breakdown
- **PF Admin Charge:** Employer has to pay 1.1% of the basic salary.
- **EDLIS:** Employer has to pay 0.5% of the basic salary.
- **EDLIS Admin Charge:** Employer has to pay 0.01% of the basic salary.
The total additional percentage the employer has to pay is 1.61% of the basic salary. Therefore, the employer actually has to pay 13.61% of the basic salary, while the employee has to pay only 12% of the basic salary.
Employees' complete 12% goes to the PF account, while the employer's contribution of 8.33% goes to the Pension Fund and 3.67% goes to the PF Fund.
I hope this clarifies things for you. Seniors, please correct me if I am wrong.
Regards,
Hemant Agarwal
[Email Removed For Privacy Reasons]
From India, Faridabad
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12EDLI Admin charge of 0.005% is incorrect; in fact, it is 0.5% of the basic salary. The PF contribution is 12% of the basic salary from both the employee and the employer. Apart from this, an employer also has to pay some administration charges. Let me explain the various accounts of the PF challan.
- **A/c No 1:** PF Contribution Account
- **A/c No 2:** PF Admin Account
- **A/c No 10:** EPS Account
- **A/c No 21:** EDLIS Account
- **A/c No 22:** EDLIS Admin Account
Employer's Contribution Breakdown
- **PF Admin Charge:** Employer has to pay 1.1% of the basic salary.
- **EDLIS:** Employer has to pay 0.5% of the basic salary.
- **EDLIS Admin Charge:** Employer has to pay 0.01% of the basic salary.
The total additional percentage the employer has to pay is 1.61% of the basic salary. Therefore, the employer actually has to pay 13.61% of the basic salary, while the employee has to pay only 12% of the basic salary.
Employees' complete 12% goes to the PF account, while the employer's contribution of 8.33% goes to the Pension Fund and 3.67% goes to the PF Fund.
I hope this clarifies things for you. Seniors, please correct me if I am wrong.
Regards,
Hemant Agarwal
[Email Removed For Privacy Reasons]
From India, Faridabad
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Dear arn2007, EDLI premium & administration charges are on EPF applicable salary, subject to individual salary ceiling of Rs. 6500/-. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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I have heard that if we have taken the EDLI policy from LIC, then the EDLI Admin Charge is 0.005%. However, if we have paid the EDLI amount directly to the EPF department, then the EDLI admin charge to pay is 0.01% of the basic amount. Please update me on this.
Thank you.
From India, Delhi
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Thank you.
From India, Delhi
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Comparitive analysis of old and amended provisions- PF, EPF and EDLI.pdf