Ministry of Labour and Employment reduce in the rate of EPF Administrative charges from .65% to .50% which is effect from 1st June, 2018.
As per EPFO: “The total collection of administrative charges in 2017-18 is estimated at Rs 3,760 crore. A decrease of administrative charges by 0.15% would lead to reduction in collection of administrative charges by Rs 870 crore. Thus, excluding the impact of future growth in EPFO business, the estimated revenue is Rs 2,980 crore. The estimated revenue expenses requirement are Rs 1,820 crores”
Notification No: S.O. 2011(E).
S.O. 2011(E).- In exercise of the powers conferred by the Explanation to paragraph 30 read with paragraph 39 of the Employees’ Provident Funds Scheme, 1952, and in supersession of the notification of the Government of India in the Ministry of Labour and Employment published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 827(E), dated the 15th March, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, after consulting the Central Board and having regard to the resources of the Employees’ Provident Fund available for meeting its normal administrative expenses, hereby fixes the administrative charges payable by the employer for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme with effect from 1st June, 2018 at 0.50 per cent (zero point five zero per cent.) of the pay as referred to in the said paragraphs subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments.
2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the administrative charges payable in respect of the period up to and inclusive of the 31st May, 2018 in respect of which the notification referred to in paragraph 1 herein shall continue to apply as if the same had not been superseded.
Latest Contribution Rate - Employees' Provident Fund w.e.f 1st June, 2018:
|
Scheme Name |
Employee contribution |
Employer contribution |
|
Employee provident fund (A/C 1) |
12% |
3.67% |
|
Employees’ Pension scheme(A/C 10) |
0 |
8.33% |
|
Employees Deposit linked insurance (A/C 21) |
0 |
0.50% |
|
EPF Administrative charges (A/C 2) |
0 |
0.50%or min Rs. 500/- |
|
TOTAL |
12% |
13% |
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