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