EPF Rate 13.16% W. E. F 01/04/2017
Break-up of the EPF contribution
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
0.65% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
From India, Kolkata
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68Break-up of the EPF contribution
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
0.65% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
From India, Kolkata
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No administration charges for EDLI temporarily from 1st April '17. Total contribution payable is only 13.15%.
Regards, N. Nataraajhan, Sakthi Management Services (Hp: +91 94835 17402; e-mail: natraj@sakthimanagement.com)
From India, Bangalore
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Regards, N. Nataraajhan, Sakthi Management Services (Hp: +91 94835 17402; e-mail: natraj@sakthimanagement.com)
From India, Bangalore
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Dear Mr Gautam,
Thnx for sharing the useful notification.
So far as Admin charges on PF is concerned, I agree that it is revised from 0.85 to 0.65 and there are some fixed minimum charges of Rs. 75 & 500 (as applicable). Described under S.O. 827(E) of the attached notification.
I have some doubt regarding admin charges of EDLI as mentioned in S.O. 828(E) (in the same notification), that says:-
"the Central Government hereby determines that "no sum" shall be payable for the time being by the employer in relation to his employees as the further sum payable by the employer every month to the Deposit-Linked Insurance Fund for the meeting the expenses in connection with the administration of the Employees Deposit-Linked Insurance Scheme, 1976 other than the expenses towards the cost of any benefits provided by or under that Scheme”
I think that denotes that no charges will be payable towards admin charges on EDLI as well (which is presently 0.01% or as the minimum amt. specified).
So as per my calculation the revised charges for employer will be
@ 13.15 % (12+0.65+0.50, being EPF + Admin Chgs on PF + EDLI Benefit Chgs respectively).
Though this is very small amount, but I deal with huge number of sub-contracting staff. So it affect our cost.
Moreover we are professional, so we need to interpret the clause in right and deep direction. So in this regard I seek the valued advice of our senior members.
From India, Delhi
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Thnx for sharing the useful notification.
So far as Admin charges on PF is concerned, I agree that it is revised from 0.85 to 0.65 and there are some fixed minimum charges of Rs. 75 & 500 (as applicable). Described under S.O. 827(E) of the attached notification.
I have some doubt regarding admin charges of EDLI as mentioned in S.O. 828(E) (in the same notification), that says:-
"the Central Government hereby determines that "no sum" shall be payable for the time being by the employer in relation to his employees as the further sum payable by the employer every month to the Deposit-Linked Insurance Fund for the meeting the expenses in connection with the administration of the Employees Deposit-Linked Insurance Scheme, 1976 other than the expenses towards the cost of any benefits provided by or under that Scheme”
I think that denotes that no charges will be payable towards admin charges on EDLI as well (which is presently 0.01% or as the minimum amt. specified).
So as per my calculation the revised charges for employer will be
@ 13.15 % (12+0.65+0.50, being EPF + Admin Chgs on PF + EDLI Benefit Chgs respectively).
Though this is very small amount, but I deal with huge number of sub-contracting staff. So it affect our cost.
Moreover we are professional, so we need to interpret the clause in right and deep direction. So in this regard I seek the valued advice of our senior members.
From India, Delhi
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Hai, In My point of view that conribution percentage is 25.15% (including Employee and Employer) S.Jawahar 9486982419
From India, Coimbatore
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From India, Coimbatore
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Dear Seniors,
Please explain the below line: "subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments".
Also, explain what a non-functional establishment is and why an organization with no PF member must contribute 75 rupees ('having no contributory member').
From India, Mumbai
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Please explain the below line: "subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments".
Also, explain what a non-functional establishment is and why an organization with no PF member must contribute 75 rupees ('having no contributory member').
From India, Mumbai
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Hi, I still have confusion regarding administrative charges on EDLI. Do we have to calculate 0.01% or is it nil? I enquired with our regional EPF office about this, but they don't have knowledge of this notification. How can the general public get clarification?
From India, Madurai
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From India, Madurai
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Dear Mr. Gokul,
That means any organization which is covered under EPFO but does not have any employees for PF deduction (there may be any reason like the establishment has been closed for the time being, and no deduction towards PF), such will be treated as a non-functional establishment. Such an establishment needs to deposit the minimum administration charges. Since there are no wages to calculate the admin charges, hence it is fixed at Rs. 75. This means if the establishment is not making any profit than either it has to surrender the Registration or has to deposit the minimum admin charges.
In the other case, if in any establishment there are very few employees whose wages for calculating the admin charges are very low. If the amount against admin charges comes to less than 500/-, then such establishment needs to deposit at least Rs. 500/- as admin charges. For example, if the PF wages for any month are Rs. 75,000/-, then the Admin charges towards admin charges come to Rs. 488/- (75000*0.65/100). Such establishments have to deposit at least Rs. 500/-
Hope this will resolve your query, learned members can correct me (if there is something required).
From India, Delhi
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That means any organization which is covered under EPFO but does not have any employees for PF deduction (there may be any reason like the establishment has been closed for the time being, and no deduction towards PF), such will be treated as a non-functional establishment. Such an establishment needs to deposit the minimum administration charges. Since there are no wages to calculate the admin charges, hence it is fixed at Rs. 75. This means if the establishment is not making any profit than either it has to surrender the Registration or has to deposit the minimum admin charges.
In the other case, if in any establishment there are very few employees whose wages for calculating the admin charges are very low. If the amount against admin charges comes to less than 500/-, then such establishment needs to deposit at least Rs. 500/- as admin charges. For example, if the PF wages for any month are Rs. 75,000/-, then the Admin charges towards admin charges come to Rs. 488/- (75000*0.65/100). Such establishments have to deposit at least Rs. 500/-
Hope this will resolve your query, learned members can correct me (if there is something required).
From India, Delhi
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Dear Sir,
Surely, it has resolved my doubts. However, I have some more queries:
Suppose an organization has 20 employees with a PF wage of 10,000 each. Will they have to pay 500 for each employee or 1,300 (10,000 * 20 = 200,000 * 0.65%)? How is this charge calculated – is it based on the individual employee or on the entire PF wage of the organization?
Suppose an organization was initially eligible for PF. Over time, all the employees have earned a PF wage above 15,000, and the organization decides to discontinue PF for them. In this case, can the organization still be a member of PF by paying Rs. 75 only so that they do not have to surrender the registration and can use it in future recruitment? Is it only Rs. 75 or 75 * number of employees?
Thank you.
From India, Mumbai
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Surely, it has resolved my doubts. However, I have some more queries:
Suppose an organization has 20 employees with a PF wage of 10,000 each. Will they have to pay 500 for each employee or 1,300 (10,000 * 20 = 200,000 * 0.65%)? How is this charge calculated – is it based on the individual employee or on the entire PF wage of the organization?
Suppose an organization was initially eligible for PF. Over time, all the employees have earned a PF wage above 15,000, and the organization decides to discontinue PF for them. In this case, can the organization still be a member of PF by paying Rs. 75 only so that they do not have to surrender the registration and can use it in future recruitment? Is it only Rs. 75 or 75 * number of employees?
Thank you.
From India, Mumbai
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Dear Mr Gokul,
As stated in the notification Rs. 500/- is the minimum amt. If as per calculation the actual amount exceeding Rs. 500/- than you have to deposit the acual amt (1300 as per your calculation). The amount is not Rs. 500 per employee rather it is total minimum amount for the month towards Admin chgs.
In next query, since only employee’s wages has exceeded the PF ceiling, but still they are member of PF. As per the Act “Excluded Employee:- The below mention to be treated as “Excluded Employee”.
(i) an employee who, withdrew the full amount of his Fund.
(ii) whose pay at the time (entitlement of become a member), exceeds Rs. 15000/- per month” A member shall continue to be member till he attains the age of 58 years or he avails the withdrawal benefit.
May be in future the wage ceiling increased, or you may need to appoint an employee under the wage ceiling. So you can’t decide to discontinue. Morever there may be any employee who is eligible to Pension, than you have to process his claim.
You can surrender the registration when the establishment is not making profit and you want to shut down it thoroughly. Yes by paying Rs. 75 only you can use it for all future references. But it is applicable only when you have NO employee as monthly contribution. If even a single person is available for monthly contribution than you have to pay Rs. 500/-.
Still I shall advice, if the case reqd., you can take some consultant's services on the matter.
From India, Delhi
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As stated in the notification Rs. 500/- is the minimum amt. If as per calculation the actual amount exceeding Rs. 500/- than you have to deposit the acual amt (1300 as per your calculation). The amount is not Rs. 500 per employee rather it is total minimum amount for the month towards Admin chgs.
In next query, since only employee’s wages has exceeded the PF ceiling, but still they are member of PF. As per the Act “Excluded Employee:- The below mention to be treated as “Excluded Employee”.
(i) an employee who, withdrew the full amount of his Fund.
(ii) whose pay at the time (entitlement of become a member), exceeds Rs. 15000/- per month” A member shall continue to be member till he attains the age of 58 years or he avails the withdrawal benefit.
May be in future the wage ceiling increased, or you may need to appoint an employee under the wage ceiling. So you can’t decide to discontinue. Morever there may be any employee who is eligible to Pension, than you have to process his claim.
You can surrender the registration when the establishment is not making profit and you want to shut down it thoroughly. Yes by paying Rs. 75 only you can use it for all future references. But it is applicable only when you have NO employee as monthly contribution. If even a single person is available for monthly contribution than you have to pay Rs. 500/-.
Still I shall advice, if the case reqd., you can take some consultant's services on the matter.
From India, Delhi
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Dear PAN SINGH Sir, Thank you so much. The topic was clearly explained by you and have answered all my queries.All points were precise and in simple language.
From India, Mumbai
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From India, Mumbai
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Sir,
There is a slight modification to Gourtam Kar's posting. Effective from 1st April 2017, the employer has to pay 13.15% instead of 13.16%. There is no need to pay a 0.01% contribution towards administrative charges on EDLI from April this year. Thank you for providing the gazette notification.
LOKANADHA BABU NARRA MANAGER
From India, Guntur
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There is a slight modification to Gourtam Kar's posting. Effective from 1st April 2017, the employer has to pay 13.15% instead of 13.16%. There is no need to pay a 0.01% contribution towards administrative charges on EDLI from April this year. Thank you for providing the gazette notification.
LOKANADHA BABU NARRA MANAGER
From India, Guntur
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please provident fund administration charges revise than we are already paid now can refund process
From India, Mumbai
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From India, Mumbai
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Hai Sir My employees EPF contribution i have made it Is it correct format, Can you explain me. Thank you
From India, Hyderabad
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From India, Hyderabad
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Hi, sir,
Madhav has been trying to activate his PF account online but is unable to log in using his date of birth. Can you please let us know how we can help him log in? Please find his date of birth mentioned below.
From India, Pune
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Madhav has been trying to activate his PF account online but is unable to log in using his date of birth. Can you please let us know how we can help him log in? Please find his date of birth mentioned below.
From India, Pune
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Hi sir, Please find more employee’s complaining of a new UAN number despite sharing his previous PF account details. Please suggest what i do
From India, Pune
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From India, Pune
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Non Functional establishment means establishments not having any PF Covered Employee on its Roll, establishments not functioning but alive
From India, New Delhi
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From India, New Delhi
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Dear Sir,
Kindly update new PF calculations for both employees and employers with percentages. How to file monthly contributions? Withdrawal procedure or transfer old PF?
Best Regards,
Nagaraj
9916818074
From India, Bangalore
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Kindly update new PF calculations for both employees and employers with percentages. How to file monthly contributions? Withdrawal procedure or transfer old PF?
Best Regards,
Nagaraj
9916818074
From India, Bangalore
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Dear all, kindly tell me exact pf contribution rate. because i am confused EDLI 0.01. Plzz help Me
From India, Delhi
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From India, Delhi
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Dear Devrana0999, The EDLI charges are 0.50%, however the admin charges of 0.01% is not applicable wef 01 Apr. 2017. Hope now it is cleared to you.
From India, Delhi
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From India, Delhi
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Please tell me the exact break up with the charges of employer contribution to PF with effect from 01st June ,2018. Will it be 13.01%
From India, Mumbai
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From India, Mumbai
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Please tell me the exact break up with the charges of employer contribution to PF with effect from 01st June ,2018.
From India, Kolkata
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From India, Kolkata
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Hello sir, Please tell me the exact break up with the charges of employer contribution to PF with effect from 01st June ,2018.
From India, Delhi
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From India, Delhi
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Dear Member,
The PF admin charges have been reduced to 0.50% effective from 1st June '18. Now, the employer needs to deposit a total of 13.00% towards the employer's contribution.
- Employee PF: 12% (will be deducted from the employee's salary)
- Employer PF: 12% (further divided into EPS and EPF)
- EDLI: 0.50%
- PF Admin Charges: 0.50%
The Admin charges on EDLI (0.01%) have also been withdrawn effective from 1st Apr. '17. I hope this clarifies the points for everyone.
From India, Delhi
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The PF admin charges have been reduced to 0.50% effective from 1st June '18. Now, the employer needs to deposit a total of 13.00% towards the employer's contribution.
- Employee PF: 12% (will be deducted from the employee's salary)
- Employer PF: 12% (further divided into EPS and EPF)
- EDLI: 0.50%
- PF Admin Charges: 0.50%
The Admin charges on EDLI (0.01%) have also been withdrawn effective from 1st Apr. '17. I hope this clarifies the points for everyone.
From India, Delhi
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What would be the components while designing compensation and benefits for year 2018-2019 as HRA and medical has become standardized..
From India, Mumbai
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From India, Mumbai
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Respected Sekark,
All educated youth who are unemployed can apply. Applicants must be a permanent resident of the area for at least 3 years. The minimum age requirement is 18 years, and the maximum age limit is 35 years. For the north-east region, the age limit is stretched up to 40 years. For SC/ST, ex-servicemen, women, and physically handicapped individuals, the age limit is extended to 40 years. Applicants must have passed 8th standard.
Preference will be given to those who have been trained for any government-recognized trade or studied in an approved institution for at least 6 months. The income of the applicant, spouse, and parents must not exceed Rs. 1 lakh per year.
From India, Mumbai
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All educated youth who are unemployed can apply. Applicants must be a permanent resident of the area for at least 3 years. The minimum age requirement is 18 years, and the maximum age limit is 35 years. For the north-east region, the age limit is stretched up to 40 years. For SC/ST, ex-servicemen, women, and physically handicapped individuals, the age limit is extended to 40 years. Applicants must have passed 8th standard.
Preference will be given to those who have been trained for any government-recognized trade or studied in an approved institution for at least 6 months. The income of the applicant, spouse, and parents must not exceed Rs. 1 lakh per year.
From India, Mumbai
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Hi,
Could someone please clarify the ceiling amount if an employee's wage exceeds the Rs. 15,000 per month limit? I need details on the contributions required from both employees and the employer.
Thanks,
Shailender
From India, Chennai
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Could someone please clarify the ceiling amount if an employee's wage exceeds the Rs. 15,000 per month limit? I need details on the contributions required from both employees and the employer.
Thanks,
Shailender
From India, Chennai
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Requesting Shailendra,
Kindly specify the question - are you asking for the gross wages, the PF contribution, or the ESIC contribution? Wages can exceed 15,000; it will depend on the minimum wages of your state or a particular industry.
From India, Mumbai
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Kindly specify the question - are you asking for the gross wages, the PF contribution, or the ESIC contribution? Wages can exceed 15,000; it will depend on the minimum wages of your state or a particular industry.
From India, Mumbai
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I wanted to clarify that even if the basic pay of an employee exceeds 15k per month, the company can deduct 12% on 15k for EPF as an employee contribution. I am seeking information on what the total contribution or payment by the employer would be.
Thank you.
From India, Chennai
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Thank you.
From India, Chennai
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