PF admin charges is the contribution from employer’s end. It is calculated on the basis of your Basic+DA from your salary. The breakup of EPF contribution is different for the employee and the employer. In addition to 12% of employer PF/PS contribution, the employer also has to pay other charges. The contribution percentage is as below:
Employee: 12% to Employee Provident Fund (EPF).
Employer:
- 3.67% into EPF
- 8.33% into EPS
- 0.5% into EDLI
- 0.50% into PF admin charges from June 2018
Note: Minimum contribution Rs. 500 or Rs. 75 for non-contribution of PF admin charges.
Revised Rates of Contribution to various PF Accounts w.e.f. 1 June 2018
Ministry of Labour and Employment reduce in the rate of EPF Administrative charges from .65% to .50% which is effect from 1st June, 2018.
In line with the recent amendment/ reduction in PF Admin charges notified by the EPFO, the revised rates of contribution to various PF accounts applicable w.e.f. 1 June 2018, are as under:
Contribution Rate (%) | Employee’s Contribution Rate (%) | Employer’s Contribution Rate (%) |
A/c No. 1: PF Contribution Account* | 12 | 3.67 |
A/c No. 2: PF Admin Charges Account | – | 0.50 or min Rs. 500/- |
A/c No. 10: EPS Contribution Account | – | 8.33 |
A/c No. 21: EDLIS Contribution Account | – | 0.50 |
A/c No. 22: EDLIS Admin Charges Account | – | – |
Total Contribution | 12 | 13 |
PF Admin Charges reduced to 0.5% w.e.f. 1 June 2018
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.
PF Admin Charges Reduced to 0.5% w.e.f. 1 June 2018: MoL&E/ EPFO Notification dt. 21 May 2018