PF admin charges are bear by both employer as well as employee. A recent notification announced by the ministry of labor and employment, the EPF admin charges are reduced to 0.65% of the total EPF wages of the respective employee. Also part of the decision was to avoid any administrative charges collected against EDLI contributors.
EPF or PF is the employee provident fund which is scheme that turns very beneficiary to the candidate during the retirement period and is available only to the salaried employees. As a part of the scheme a predetermined amount of 12% is deducted from the employee’s salary. Whereas employer has a contribution of 3.67% towards employee provident fund and another 8.33% is contributed towards employee pension scheme, which is also a retirement benefit scheme.
Unlike the PF and EPS, EDLI benefits in the cases of unexpected deaths that in other ways is left unaddressed. EDLI is an insurance scheme incorporated for this purpose and is something that’s given to the employee family or nominee during the situations of unexpected death of the respective employee.
EPF admin charges contribution rate that is newly developed is given below in the table in detail for both employer as well as employee respectively. Using the table mentioned one can easily calculate the admin charges on PF.
It is always suggested that the EPF administrative charges are rounded to the next closer upper limit. Employers must pay a minimum of 500/- if the admin charges on PF are less than 500/-. PF or EPS calculations remains same to employees of any level and from any industry and also from the companies of any size from small to large.
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