What is Admin charges on PF?

Posted on 12th Jul 2018 | 1039 views

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PF admin charges:

PF admin charges are the administrative charges on PF to be paid by the employer to the Provident Fund Organization towards the employee PF. These admin charges are fixed by the central government. EPFO (Employee’s Provident Fund Organization) has recently issued a circular regarding the revision of PF admin charges. The employee pays 12% contribution his or her to PF while the employer contributes 13.16% towards PF in which 0.65% of employer contribution goes toward PF admin charges.

EPF admin charges

EPF admin charges:

EPF admin charges are solely paid by the employer itself. The employee does not have any obligation to pay admin charges. Employers 13.16% of PF contribution is not directly deposited in employee PF account but it is separated into many categories, one of which is EPF admin charges. Revised percentage of PF admin charges with effect from 1st April 2017 is 0.65% ( reduced from 0.85%). Revision of EPF admin charges are like this, prior to Dec 2014- PF admin charges is 1.10%, from 1st Jan 2015 onwards it is 0.85 % and from April 2017 it is 0.65% and current admin charges with a deduction of 0.15 %, now are at 0.5%. Delay in the PF due payment attracts penal charges so the employer must pay PF contribution along with admin charges on or before of the last date.

Here EDLI stands for Employee’s Deposit Linked Insurance Scheme.

EDLI admin charges also come under the employers PF contribution towards employee PF. In 13.16% of employers contribution, 0.5% goes towards EDLI and the admin charges for EDLI i.e 0.01% is also paid by the employer.

A recent circular issued by EPFO reports that there is a reduction in EPF admin charges to by 0.15% and the revised EPF admin charges are 0.5% w.e.f 1st June 2018. So the total revised PF contribution by the employer is at 13.01%.

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