Administative charges on EPF Wages (A/c no.2) has bee reduced from 0.65% to 0.5% with effect from 01/06/2018 (ie.,
EPF payment of Jun-2018 paid in July-2018) subject to a minimum sum of Rs.500/-. Minimum for non-functional
establishments having no contributory members is Rs.75/-
Revised Rates of Contribution to various PF Accounts w.e.f. 1 June 2018
In line with the recent amendment/ reduction in PF Admin charges notified by the EPFO, the revised rates of contribution to various PF accounts applicable w.e.f. 1 June 2018, are as under:
Contribution Rate (%) Employee’s Contribution Rate (%) Employer’s Contribution Rate (%)
A/c No. 1: PF Contribution Account* 12.00 3.67
A/c No. 2: PF Admin Charges Account – 0.50
A/c No. 10: EPS Contribution Account – 8.33
A/c No. 21: EDLIS Contribution Account – 0.50
A/c No. 22: EDLIS Admin Charges Account – –
Total Contribution 12.00 13.00
* In certain cases, 10% PF rate is applicable, wherein Employee Share to A/c No. 1 will become 10% and Employer share will become 1.67%.
PF Admin Charges reduced to 0.5% w.e.f. 1 June 2018
PF Admin Charges Reduced to 0.5% w.e.f. 1 June 2018: MoL&E/ EPFO Notification dt. 21 May 2018
S.O. 2011(E).- In exercise of the powers conferred by the Explanation to paragraph 30 read with paragraph 39 of the Employees’ Provident Funds Scheme, 1952, and in supersession of the notification of the Government of India in the Ministry of Labour and Employment published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 827(E), dated the 15th March, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, after consulting the Central Board and having regard to the resources of the Employees’ Provident Fund available for meeting its normal administrative expenses, hereby fixes the administrative charges payable by the employer for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme with effect from 1st June, 2018 at 0.50 per cent (zero point five zero per cent.) of the pay as referred to in the said paragraphs 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.
2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the administrative charges payable in respect of the period up to and inclusive of the 31st May, 2018 in respect of which the notification referred to in paragraph 1 herein shall continue to apply as if the same had not been superseded.
PF Admin Charges reduced from 0.85% to 0.65% and EDLI Admin Charges waived by EPFO w.e.f. 1 Apr. 2017
The expenditure incurred in administering the Employees’ Provident Fund (EPF), Employees’ Deposit Linked Insurance (EDLI), etc., are met from the administrative and inspection charges collected from the employers. Earlier, the PF Admin charges were reduced from 1.10% to 0.85% w.e.f. 1 Jan. 2015, which has been reduced further to 0.65% by EPFO w.e.f. 1 Apr. 2017 (applicable upto 31 May 2018). Besides, EDLI Admin charges are no longer payable (i.e. waived) w.e.f. 1 Apr. 2017.
Regards,
PRAKASH.A
From India, Bellary
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2EPF payment of Jun-2018 paid in July-2018) subject to a minimum sum of Rs.500/-. Minimum for non-functional
establishments having no contributory members is Rs.75/-
Revised Rates of Contribution to various PF Accounts w.e.f. 1 June 2018
In line with the recent amendment/ reduction in PF Admin charges notified by the EPFO, the revised rates of contribution to various PF accounts applicable w.e.f. 1 June 2018, are as under:
Contribution Rate (%) Employee’s Contribution Rate (%) Employer’s Contribution Rate (%)
A/c No. 1: PF Contribution Account* 12.00 3.67
A/c No. 2: PF Admin Charges Account – 0.50
A/c No. 10: EPS Contribution Account – 8.33
A/c No. 21: EDLIS Contribution Account – 0.50
A/c No. 22: EDLIS Admin Charges Account – –
Total Contribution 12.00 13.00
* In certain cases, 10% PF rate is applicable, wherein Employee Share to A/c No. 1 will become 10% and Employer share will become 1.67%.
PF Admin Charges reduced to 0.5% w.e.f. 1 June 2018
PF Admin Charges Reduced to 0.5% w.e.f. 1 June 2018: MoL&E/ EPFO Notification dt. 21 May 2018
S.O. 2011(E).- In exercise of the powers conferred by the Explanation to paragraph 30 read with paragraph 39 of the Employees’ Provident Funds Scheme, 1952, and in supersession of the notification of the Government of India in the Ministry of Labour and Employment published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 827(E), dated the 15th March, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, after consulting the Central Board and having regard to the resources of the Employees’ Provident Fund available for meeting its normal administrative expenses, hereby fixes the administrative charges payable by the employer for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme with effect from 1st June, 2018 at 0.50 per cent (zero point five zero per cent.) of the pay as referred to in the said paragraphs 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.
2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the administrative charges payable in respect of the period up to and inclusive of the 31st May, 2018 in respect of which the notification referred to in paragraph 1 herein shall continue to apply as if the same had not been superseded.
PF Admin Charges reduced from 0.85% to 0.65% and EDLI Admin Charges waived by EPFO w.e.f. 1 Apr. 2017
The expenditure incurred in administering the Employees’ Provident Fund (EPF), Employees’ Deposit Linked Insurance (EDLI), etc., are met from the administrative and inspection charges collected from the employers. Earlier, the PF Admin charges were reduced from 1.10% to 0.85% w.e.f. 1 Jan. 2015, which has been reduced further to 0.65% by EPFO w.e.f. 1 Apr. 2017 (applicable upto 31 May 2018). Besides, EDLI Admin charges are no longer payable (i.e. waived) w.e.f. 1 Apr. 2017.
Regards,
PRAKASH.A
From India, Bellary
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Hello Prakash,
Thank you for your query. It's clear that you've done extensive research on the changes to EPF administration charges and contributions. Here's a practical explanation to further clarify your understanding:
1. 💁‍♂️ As of June 1, 2018, EPF administrative charges (A/c no.2) have been reduced to 0.5%. This is applicable for the EPF payment of June 2018, paid in July 2018.
2. 🤶 The minimum sum for these charges is Rs. 500 for functional establishments. For non-functional establishments with no contributing members, the minimum charge is Rs. 75 per month.
3. 🤒 According to the recent amendment by the EPFO, the revised rates of contribution to various PF accounts from June 1, 2018, are as follows:
- A/c No. 1: PF Contribution Account - Employee's Contribution Rate: 12.00%, Employer's Contribution Rate: 3.67%
- A/c No. 2: PF Admin Charges Account - Employer's Contribution Rate: 0.50%
- A/c No. 10: EPS Contribution Account - Employer's Contribution Rate: 8.33%
- A/c No. 21: EDLIS Contribution Account - Employer's Contribution Rate: 0.50%
- A/c No. 22: EDLIS Admin Charges Account - No contribution.
4. 🤖 Before June 1, 2018, the PF admin charges were 0.65%. This reduction to 0.5% only applies to the period after this date. For the period up to and including May 31, 2018, the old rate of 0.65% applies.
5. 🤔 Please note that in some cases, a 10% PF rate is applicable. In such cases, the Employee's share to A/c No. 1 becomes 10% and the Employer's share becomes 1.67%.
I hope this helps clarify the changes and rates for you. Remember, it's crucial to keep updated with these changes as they happen, to ensure accurate and timely contributions.
If you have any other questions on this or other HR-related topics, feel free to ask!
Best, [Your Name]
From India, Gurugram
Acknowledge(0)Amend(0)
Thank you for your query. It's clear that you've done extensive research on the changes to EPF administration charges and contributions. Here's a practical explanation to further clarify your understanding:
1. 💁‍♂️ As of June 1, 2018, EPF administrative charges (A/c no.2) have been reduced to 0.5%. This is applicable for the EPF payment of June 2018, paid in July 2018.
2. 🤶 The minimum sum for these charges is Rs. 500 for functional establishments. For non-functional establishments with no contributing members, the minimum charge is Rs. 75 per month.
3. 🤒 According to the recent amendment by the EPFO, the revised rates of contribution to various PF accounts from June 1, 2018, are as follows:
- A/c No. 1: PF Contribution Account - Employee's Contribution Rate: 12.00%, Employer's Contribution Rate: 3.67%
- A/c No. 2: PF Admin Charges Account - Employer's Contribution Rate: 0.50%
- A/c No. 10: EPS Contribution Account - Employer's Contribution Rate: 8.33%
- A/c No. 21: EDLIS Contribution Account - Employer's Contribution Rate: 0.50%
- A/c No. 22: EDLIS Admin Charges Account - No contribution.
4. 🤖 Before June 1, 2018, the PF admin charges were 0.65%. This reduction to 0.5% only applies to the period after this date. For the period up to and including May 31, 2018, the old rate of 0.65% applies.
5. 🤔 Please note that in some cases, a 10% PF rate is applicable. In such cases, the Employee's share to A/c No. 1 becomes 10% and the Employer's share becomes 1.67%.
I hope this helps clarify the changes and rates for you. Remember, it's crucial to keep updated with these changes as they happen, to ensure accurate and timely contributions.
If you have any other questions on this or other HR-related topics, feel free to ask!
Best, [Your Name]
From India, Gurugram
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Epfo-circular-2 2-mar-2017-pf-e dli-admin-charg es-reduced-waiv ed-wef-1-apr-20 17.pdf