Reduction of Administrative Charges of EPF from 1.10% to 0.85 %

By | March 25, 2015
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Reduction of Administrative Charges of EPF from 1.10% to 0.85 % 01.01.2015.
on Wednesday, March 25, 2015
Recently The Ministry of Labour and employment government of India has issued notification to revise the rate of administrative charges under the EPFS. The changes are effective from 01.01.2015.

Key Amendments in the Notification.
Under Employee’s Provident Fund Scheme,1952:
The administrative charges paid by the employer on a monthly pay (as defined under EPF Act) has been reduced from 1.10% per cent to 0.85 per cent of the monthly pay of the employee.
Every establishment covered under the EPF Act has to pay a minimum administrative changes of Rs 500 per month .Earlier minimum amount was  Rs 5 per Worker.
Further for non functional establishments covered under the EPF ACt ,having no contributory member ,the employer has to pay minimum administrative charges of Rs 75 per month.

Under Employees Deposit Linked Insurance Scheme 1976:
The administrative charges paid by the employer remained unchanged at 0.01 % of the monthly pay (as defined in the EPF Act) of the employee.
Every establishment covered under the EPF Act has to pay a minimum administrative changes of Rs 200 per month .Earlier it was Rs 2 per establishment.
Further for non functional establishments covered under the EPF Act ,Having no contributory member ,the employer has to pay minimum administrative charges of Rs 25 per month.
Establishment exempted from the statutory employee provident fund schemes and running private PF trusts will continue to pay inspection charges at the rate of 0.18%  of the monthly pay as defined under the epf act of the employees.

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