Reduction in Provident Fund Administrative Charges

Reduction in Administrative Charges The Provident Fund Department has by its circular dated March 2, 2015 announced a reduction in the administrative charges from 1.10% to 0.85% as directed by the Ministry of Labour vide their Notification dated February 2, 2015. 

As per the notification S.O. 323(E), which reads “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 erstwhile Ministry of Labour number S.O. 1437 dated the 9’h July, 1998, published in the Gazette of India, Part II, section 3, sub-section (ii) dated the 18th July, 1998, 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 at 0.85 per cent. (zero point eight five per cent.) of the pay as referred to in the said paragraphs subject to 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.” Some small relief to the employers as the social welfare oganisation is rated as very inefficient in the use, management and returns on the funds that are compulsorily deposited with the organization. Workers and unions have never pressurized the Board to become more professional and better organized for generating better returns from the funds in their possession.


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