Is it official that PF administrative charges have been reduced to 0.85% from 1.10%? Is there an official circular/notification? If yes, please could anyone forward it to me.
From India, Mumbai
From India, Mumbai
18
Dear All,
With reference to the above circular dated 02nd March, 2015, the EPFO has come up with a circular for changing the Admin Charge(A/c No 2) for an establishment from the existing 1.10% to 0.85% of Basic Wages + DA + Cash Value of Food Concession, thereby resulting in reduction by 25 basis points. The amendment is made effective from 01 Jan, 2015. As a result of the amendment, the Employer Share of PF has changed from 13.61% to 13.36%.
However, the department has set a limit for minimum charges for A/c No. 2 (Admin Charges on PF) and A/c No 22 (Admin Charges on EDLI) – as given below
Date of Effect : 01 January, 2015
Category of Establishment: At-least 1 PF member (Employee)
Before Amendment
A/c No 2 : Admin Charges on PF : 1.10% of Basic Wages + DA + Cash Value of Food Concession
A/c No 22 : Admin Charges on EDLI : 0.01% of Basic Wages + DA + Cash Value of Food Concession
After Amendment
A/c No 2 :0.84% subject to minimum Rs.500
A/c No 22:0.01% subject to minimum Rs.200
Category of Establishment : Non-functional establishment having no PF member (Employee)
Before Amendment
A/c No 2 : Admin Charges on PF : Rs. 5
A/c No 22 : Admin Charges on EDLI Rs. 2
After Amendment
A/c No 2 :Rs. 75
A/c No. 22 :Rs. 25
To conclude, if the amount payable for a month falls below Rs.500 (for A/c No 2) or Rs.200 (for A/c No 22), then Rs.500 and Rs.200 will be payable in A/c No. 2 and 22, respectively. Effectively, PF liability will increase for employers with low Aggregate Wages and will decrease for employers with higher Aggregate Wages.
Note: Nothing contained in above notification shall affect the administrative charges payable in respect of the period upto and inclusive of 31st Dec 2014
From India, Delhi
With reference to the above circular dated 02nd March, 2015, the EPFO has come up with a circular for changing the Admin Charge(A/c No 2) for an establishment from the existing 1.10% to 0.85% of Basic Wages + DA + Cash Value of Food Concession, thereby resulting in reduction by 25 basis points. The amendment is made effective from 01 Jan, 2015. As a result of the amendment, the Employer Share of PF has changed from 13.61% to 13.36%.
However, the department has set a limit for minimum charges for A/c No. 2 (Admin Charges on PF) and A/c No 22 (Admin Charges on EDLI) – as given below
Date of Effect : 01 January, 2015
Category of Establishment: At-least 1 PF member (Employee)
Before Amendment
A/c No 2 : Admin Charges on PF : 1.10% of Basic Wages + DA + Cash Value of Food Concession
A/c No 22 : Admin Charges on EDLI : 0.01% of Basic Wages + DA + Cash Value of Food Concession
After Amendment
A/c No 2 :0.84% subject to minimum Rs.500
A/c No 22:0.01% subject to minimum Rs.200
Category of Establishment : Non-functional establishment having no PF member (Employee)
Before Amendment
A/c No 2 : Admin Charges on PF : Rs. 5
A/c No 22 : Admin Charges on EDLI Rs. 2
After Amendment
A/c No 2 :Rs. 75
A/c No. 22 :Rs. 25
To conclude, if the amount payable for a month falls below Rs.500 (for A/c No 2) or Rs.200 (for A/c No 22), then Rs.500 and Rs.200 will be payable in A/c No. 2 and 22, respectively. Effectively, PF liability will increase for employers with low Aggregate Wages and will decrease for employers with higher Aggregate Wages.
Note: Nothing contained in above notification shall affect the administrative charges payable in respect of the period upto and inclusive of 31st Dec 2014
From India, Delhi
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PF Admin Charges Notification.pd f