EPF Admin Charges Reduced To 0.50%: Here is a good news for all the employers that Employee Provident Fund Organization has reduced the PF admin charges to 0.50% from 0.65%. The reduced EPF administrative charges will be effective from 1 June 2018. Employers need to pay only 0.50% of EPF administrative charges for the PF contributions from the month of June 2018. The notification of new EPF admin charges 2018 was released on 21 May 2018.
Reduced PF Admin Charges (0.50%) Notification:
Note: Up to May 2018, employers need to pay previous admin charges of 0.65%. So next month when you make PF challan for May 2018 contributions then the PF admin charges will be 0.65%. The changed 0.50% PF admin charges will be effective from June 2018 EPF contributions.
As per this recent notification also, every non-functional establishment which doesn’t have any PF contributor need to pay a minimum sum of 75 Rs and remaining all establishments should pay a minimum sum of 500 Rs. This remained as same for last few years.
Trend Of EPF Admin Charges:
|Up to 1 Jan 2015||1.10%|
|Up to 1 April 2017||0.85%|
|Up to 1 June 2018||0.65%|
|After 1 June 2018 (Present)||0.50%|
What Is EPF Admin Charges:
Every employer needs to pay an administration charge of 0.50% on PF wages of employees, and the details of EPF admin charges will be reflected in account number 2 of EPF monthly challan.
EPF Challan Account Details:
|Account No 1||PF Wages 12% of employee + 3.67% of employer|
|Account No 2||0.50% PF admin charges|
|Account No 10||8.33% of Pension wages by the employer|
|Account No 21||0.50% EDLI (Employee Deposit Linked Insurance) charges|
With reduced EPF admin charges of 0.50%, the total contribution of the employer towards employee provident fund scheme in every month is reduced to 13% from 13.15%