Ministry of Labour and Employment decided to reduce PF administrative charges payable by employers. As per gazette notification issued on 15th March, 2017 new rate of contribution towards PF administrative charges will 0.65% of total EPF wages of an employee. It is also decided not to collect Administrative charges towards EDLI contributions.

“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 April, 2017 at 0.65 per cent (zero point six five 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.”

“the Central Government hereby determines that no sum shall be payable for the time being by the employer in relation to his employees as the further sum payable by the employer every month to the Deposit-Linked Insurance Fund for the meeting the expenses in connection with the administration of the Employees Deposit-Linked Insurance Scheme, 1976 other than the expenses towards the cost of any benefits provided by or under that scheme.”

For the removal of doubts, it is notified by Ministry that nothing contained in this notification shall affect the PF administrative charges payable in respect of the period upto and inclusive of the 31st March, 2017

Official Notification: PF Administrative Charges 2017

According to this notification, New rate of PF contribution will be as follows:

EMPLOYER 3.67% 8.33% 0.5% 0.65% 13.15%
EMPLOYEE 12% 0 0 0 12%

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