Reduction in PF administrative charges

Reduction in PF administrative charges

HR Blogs

Human Resource / HR Blogs 181 Views 0

The Ministry of Labour and Employment has lowered the PF administrative expenses with impact from 01-Apr-2017. You'll be able to learn the gazette notification here. The highlights of the notification are as follows.

1. The EPF administrative cost shall be zero.65% of the entire PF wage from 01-Apr-2017. The sooner administrative cost was zero.85% (till 31-Mar-2017). Consequently, the executive costs to be remitted underneath A/C No. 2 (PF admin account) shall bear a change.

2. In case of non-functional institutions (coated underneath PF) with no contributing member, an administrative cost of Rs 75 per thirty 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.65%), 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 fees, calculated as zero.65% of wages, works out to Rs 455 (which is lower than Rs 500). Such institutions need to remit Rs 500 in the direction of administrative expenses.

four. The notification clarifies that the brand new administrative costs are relevant solely from the wage interval beginning April 2017. In different phrases, administrative costs for durations as much as March 31 ought to be calculated as per the sooner charges.

Modifications to EDLI administrative fees

The notification additionally states that the Staff Deposit-Linked Insurance coverage Scheme (EDLI) administration costs shall not be payable from 01-Apr-2017. The EDLI administration costs have been zero.01% of the wages (or the minimal prescribed quantity) till 31-Mar-2017.

Posted in: Blog

Comments