Reduction in Rate of Administrative Charges from 1.10% to 0.85%  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 Rs 25 for every non-functional firm having no (PF) contributing member and Rs 200 for any other establishments.

Summarised Table of PF rates

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.

Download Full Text of the EPF Notification

(Compiled jointly by ‘CA Sudhir K Goyal’ who can be reached at email sudhirgoyalca@gmail.com and Taxguru Team)

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Category : Corporate Law (3595)
Type : Notifications (15436) Notifications/Circulars (30822)
Tags : EPF (256) EPFO (225) PF (15)

32 responses to “Govt. reduces PF Administrative Charges”

  1. pasha says:

    sir,
    REquesting EPF calauction xl sheet copy.

  2. amit says:

    As per new circular of pf department adm charges for ac.no. 02 should be 0.65% instead of 0.85 and for ac. no.22 should be Nil instead of 0.01%. So need to update circular on your website sir’s

  3. Jai Prakash Singh says:

    Recently as per new Govt rules, PF A/c No.2 is charged @ 0.65% instead of @ 0.85% and A/c No.22 is Nil from 1st April 2017. Please clarify is it correct.

  4. Rajesh says:

    Recently EPFO reduced administration charges to 0.65% effective from 1 April 2017.

  5. ajay kumar thakur says:

    a/c.no. 22, my company 105 employee & 6 ECR (Actually 0.01% = lamsum Rs.130) & 6 challan 6*200=1200.plz help me.

  6. CA SUDHIR GOYAL says:

    Surrender your EPF registration.

  7. CA SUDHIR GOYAL says:

    PF on basic wages, dearness allowance and retaining allowance.

    Admin too on basic wages, dearness allowance and retaining allowance

  8. Vivek Dua says:

    Hello Team,
    Is the PF Administrative Charges to be deducted from Employee CTC?
    Please confirm.

  9. Vishnu varadhan says:

    1.we have salary structure as basic + DA + HRA
    2.Whether admin charges i.e EDLIS and PF Admn.charges to be paid on basic only or basic plus da?
    3.whether pf to deducted on basic+da or basic+da+hra.

    reply me ASAP

  10. A N S SITARAM says:

    Dear Sir

    My company works is closed there is no employees & No work , present how is the pay is EPF challan , Please kindly request tell me (Basic amount)

    Kindly suggest

  11. Syed says:

    Dear Sir ,

    I want to learn about monthly PF ECR Generate , is there anywhere any coaching clases

  12. Manjula Shrivastava says:

    Mine is a typical may be rare case
    I am a senior citizen 15 Jan 1947 born retired from Central Govt and presently getting pension around 31,000 PM.
    After retirement at the age of 60+,I started Technical consultancy services with the group of retired technical people above 60 years of age all pensioners getting pension more than limit of EPF ie 15000.All consultants were part time ,freelancers and were booked for 4 to 5 days at an average.
    Last month I applied on line to get EPF NO under 1(4) and mentioned effective date of Dec 2007.Unfortunately I got allotted the Number and now being asked to pay all chages wef Dec 2007.I,in the application I have shown ONE Full time employee ie SELF.

    1. Whether people above 60 years of age are eligible for starting PF and pension contribution?
    2. Whether part time freelancer technical consultants working 4-5 days a month at an average and being paid piece meal basis are eligible for PF contribution?
    3. Whether my propitiatory is eligible for EPF Registration ?

    Pl advice what to do in the present circumstances? and what may be financial Implication.

  13. arun devasya says:

    Dear Team,

    I have resigned from A company september 2012 .but after that i have checked through epfo portal account balance 12000 appro on 2013 .but inactive account checked on september 2015 . but its showing appro 10000 only .what was the reason for reduction

  14. Ruchika Vaid says:

    I am a private employee. I don’t understand the PF Scheme.
    If 10% salary are deducted every month for the PF, How much govt will giving for the employees.

  15. tarit roy says:

    we are only two employee for last 15 years.
    how to paid rs.500/- and rs.200/- for admn. charges.
    please told me if any category for this charges.

  16. Gaurav Singh Rathore says:

    tell me pf detail

  17. Mukesh Parmar says:

    we are two employee
    how to decide Adm charge 0.85 or 500
    0.01 or 200

    pl suggest

  18. dev says:

    what pf admin charge applicable when all employees left from establisment and it is continue its business

  19. CHHAYA PATEL says:

    WHETHER IT IS REQUIRED TO DEPOSITE PROVIDENT FUND WITHIN DUE DATE BY EMPLOYER ? WHAT IS THE DUE DATE FOR THAT ?

  20. RAKESH KUMAR says:

    dear siri do not understanding new rate of pf challan so please attached create pf challan copy m/o apr-15 & i saw this and cont.our work. Thankyou

  21. Hasina says:

    The new admin charges is applicable for all type of establishment or it is different.

  22. Hasina says:

    if already paid for the month of jan & feb -15 Adminstrative charges @1.10% how we can recover the same.

    Kindly Suggest

  23. Kamal Ghosh says:

    Not cleared regarding A/c No. 2 , 21 & 22

  24. NANDHASS says:

    THANK U VERY MUCH FOR DETAILS PROVIDED

  25. BABU.S says:

    Mr. MANIKANDAN SAID IS CORRECT

    1. No Employee :-minimum Rs. 5 in A/c 2 and Rs. 2 in A/c 22.
    2. Others:- 1.1% in A/c 2 and 0.01% in A/c 22.

    New Rule:-
    Two Conditions:-
    1. No Employee:- minimum Rs. 75 in A/c 2 and Rs. 25 in A/c 22
    2. Others:- 0.85% or Rs. 500 which is higher in A/c 2 and 0.01% or Rs. 200 which is higher in A/c 22

  26. Nimish Karwa says:

    It can be adjusted in the next month

    I have mail to the EPF office at this mail id acc.kargoa@epfindia.gov.in

  27. Nimish Karwa says:

    I have mail to the EPF office at this mail id acc.kargoa@epfindia.gov.in

    They have reply me it can be adjusted in the next month

    You can also ask your EPF office

  28. manikandan says:

    Detail of revision as under:-

    Previous Rule:-
    Two Conditions:-
    1. No Employee :-minimum Rs. 5 in A/c 2 and Rs. 2 in A/c 22.
    2. Others:- 1.1% in A/c 2 and 0.01% in A/c 22.

    New Rule:-
    Two Conditions:-
    1. No Employee:- minimum Rs. 75 in A/c 2 and Rs. 25 in A/c 22
    2. Others:- 0.85% or Rs. 500 which is higher in A/c 2 and 0.01% or Rs. 200 which is higher in A/c 22

  29. srinivas says:

    We already paid we can adjust in future payments or we get refund

    Srinivas

  30. n.sridhar says:

    if already paid for the month of jan & feb -15 Adminstrative charges @1.10% how we can recover the same

    kindly suggest

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