EPFO reduces administrative charges to 0.5%

The Employees’ Provident Fund Organisation’s (EPFO) had decided to cut the administrative charges to 0.50 per cent from 0.65 per cent of total wage paid by employers which would be effective from June 1, 2018. Under PF Scheme, the employer pays the employer’s as well as employees contribution. The government has decided to levy administrative charges in this payment of contribution towards PF Scheme. As per the notification, the administrative charges are to be paid by the employer at a rate of 0.50% of the contribution amount or 500 rupees per month whichever is lesser. For establishments without PF member, the employer shall be liable to pay the administrative charge of maximum 75 Rupees per month. This will encourage employers to formalise the employment of the employee by bringing them under the umbrella of PF Schemes.

EPFO reduces administrative charges to 0.5%