Reduction in Rate of Provident Fund Administrative Charges from 1.10°/o to 0.85°/o of the pay

The Government of India issues notification No. S.O. 323(E) and S.O. 324(E) both dated 02.02.2015, on reducing the administrative charges under the Employees’ Provident Funds Scheme, 1952. The Ministry of Labour and Employment, Government of India, has issued a notification to revise the rate of administrative charges under the Employees’ Provident Funds Scheme, 1952. The changes will be effective from 1 January 2015 so administration charges payable upto 31.12.2014 will be levied at old rate.

EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges under the ambit of its social security schemes, effective from January 1st 2015. The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification No. S.O. 323(E) and S.O. 324(E) both dated 02.02.2015.

According to the notification, the minimum monthly administrative charges will be ₹ 25 for every non-functional firm having no (PF) contributing member and ₹ 200 for any other establishments.

Summarised Table

Various accounts of PF Challan

OLD Rate

New rates W.e.f 1-Jan-15

Employee

Employer

Employee

Employer

A/c No 1: PF contribution Account

12%

3.67%

12%

3.67%

A/c No 2: PF Admin account

1.10%

0.85%

A/c No 10: EPS account

8.33%

8.33%

A/c No 21: EDLIS account

o.50%

o.50%

A/c No 22: EDLIS admin account

0.01%

0.01%

Net Rate

12%

13.61%*

12%

13.36%*

*Additional contribution by employer has to pay is: 1.36 (old 1.61%) of basic.

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