Reduction in PF administrative charges (effective 01-June-2018)

Reduction in PF administrative charges (effective 01-June-2018)

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The Ministry of Labour and Employment has lowered the PF administrative expenses with impact from 01-June-2018. You possibly can learn the gazette notification here. The highlights of the notification are as follows.

1. The EPF administrative cost shall be zero.50% of the entire PF wage from 01-June-2018. The sooner administrative cost was zero.65% (till 31-Might-2018). Consequently, the executive expenses to be remitted beneath A/C No. 2 (PF admin account) shall bear a change.

2. In case of non-functional institutions (coated beneath PF) with no contributing member, an administrative cost of Rs 75 per 30 days shall be payable. A non-functional institution is a corporation which isn't operational and therefore might not have any wages payable to staff.

three. In case of useful institutions, if the executive cost (calculated at zero.50%), is lower than Rs 500, then the executive cost to be remitted shall be Rs 500. For instance, if the PF wages for a month is Rs 70,000, then the executive expenses, calculated as zero.50% of wages, works out to Rs 350 (which is lower than Rs 500). Such an institution has to remit Rs 500 in the direction of administrative costs.

four. The notification clarifies that the brand new administrative fees are relevant solely from the wage interval beginning June 2018. In different phrases, administrative expenses for durations as much as 31-Might-2018 ought to be calculated as per the sooner charges.

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