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
From India, Tirupur
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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
From India, Tirupur
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The administration charge is payable on the total amount of the contribution. When you are paying Contributions on a higher salary administration charges should also be on that contribution.
From India, Kannur
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4526From India, Kannur
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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.
From India, Kannur
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From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Admin Charges reduced from 1.10% to 0.85%.pdf