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 (4040)
Type : Notifications (15924) Notifications/Circulars (32209)
Tags : EPF (291) EPFO (258) 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

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