Introduction
The Employees’ Provident Fund (EPF) is a retirement savings scheme that is managed by the Employees’ Provident Fund Organisation (EPFO). The EPF is a mandatory contribution for all salaried employees in India. On 1 June 2018, the EPFO announced a reduction in the administrative charges for EPF accounts from 0.85% to 0.50%. This reduction in administrative charges is expected to benefit over 6 crore EPF account holders in India. This move is expected to increase the returns on EPF investments and help employees save more for their retirement.
EPF Admin Charges Reduced To 0.50% W.E.F 1 June 2018
The Employees’ Provident Fund Organisation (EPFO) has reduced the administrative charges for managing the Employees’ Provident Fund (EPF) from 0.85% to 0.50% with effect from 1 June 2018. This reduction in administrative charges is expected to benefit over 5 crore EPF subscribers. The decision was taken by the Central Board of Trustees (CBT) of the EPFO in its meeting held on 28 May 2018. The CBT also decided to reduce the administrative charges for managing the Employees’ Pension Scheme (EPS) from 0.85% to 0.65%.
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EPF Admin Charges Reduced To 0.50%: Here is a good news for all the employers that Employee Provident Fund Organization has reduced the PF admin charges to 0.50% from 0.65%. The reduced EPF administrative charges will be effective from 1 June 2018. Employers need to pay only 0.50% of EPF administrative charges for the PF contributions from the month of June 2018. The notification of new EPF admin charges 2018 was released on 21 May 2018.
Reduced PF Admin Charges (0.50%) Notification:
Note: Up to May 2018, employers need to pay previous admin charges of 0.65%. So next month when you make PF challan for May 2018 contributions then the PF admin charges will be 0.65%. The changed 0.50% PF admin charges will be effective from June 2018 EPF contributions.
As per this recent notification also, every non-functional establishment which doesn’t have any PF contributor need to pay a minimum sum of 75 Rs and remaining all establishments should pay a minimum sum of 500 Rs. This remained as same for last few years.
Trend Of EPF Admin Charges:
| Up to 1 Jan 2015 | 1.10% |
| Up to 1 April 2017 | 0.85% |
| Up to 1 June 2018 | 0.65% |
| After 1 June 2018 (Present) | 0.50% |
What Is EPF Admin Charges:
Every employer needs to pay an administration charge of 0.50% on PF wages of employees, and the details of EPF admin charges will be reflected in account number 2 of EPF monthly challan.
EPF Challan Account Details:
| Account No 1 | PF Wages 12% of employee + 3.67% of employer |
| Account No 2 | 0.50% PF admin charges |
| Account No 10 | 8.33% of Pension wages by the employer |
| Account No 21 | 0.50% EDLI (Employee Deposit Linked Insurance) charges |
With reduced EPF admin charges of 0.50%, the total contribution of the employer towards employee provident fund scheme in every month is reduced to 13% from 13.15%
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The Employees’ Provident Fund Organisation (EPFO) has announced a reduction in the administrative charges for the Employees’ Provident Fund (EPF) from 0.85% to 0.50% with effect from 1 June 2018. This move is expected to benefit over 5 crore EPF subscribers.
The EPFO has stated that the reduction in administrative charges will result in an increase in the net returns to EPF subscribers. This is because the administrative charges are deducted from the total returns earned by the EPF subscribers. The reduction in administrative charges will thus result in an increase in the net returns to the EPF subscribers.
The EPFO has also stated that the reduction in administrative charges will benefit both the employers and the employees. The employers will benefit from the reduction in administrative charges as they will have to pay less towards the EPF. The employees will benefit from the increase in the net returns on their EPF investments.
The EPFO has also stated that the reduction in administrative charges will help to promote the growth of the EPF scheme. This is because the reduction in administrative charges will make the EPF scheme more attractive to employers and employees. This will result in more employers and employees investing in the EPF scheme, which will in turn result in an increase in the total returns earned by the EPF subscribers.
The EPFO has also stated that the reduction in administrative charges will help to reduce the burden on employers. This is because the employers will have to pay less towards the EPF, which will result in a reduction in their overall costs. This will in turn help to reduce the burden on employers and make the EPF scheme more attractive to them.
The EPFO has also stated that the reduction in administrative charges will help to promote the growth of the EPF scheme. This is because the reduction in administrative charges will make the EPF scheme more attractive to employers and employees. This will result in more employers and employees investing in the EPF scheme, which will in turn result in an increase in the total returns earned by the EPF subscribers.
The EPFO has also stated that the reduction in administrative charges will help to reduce the burden on employers. This is because the employers will have to pay less towards the EPF, which will result in a reduction in their overall costs. This will in turn help to reduce the burden on employers and make the EPF scheme more attractive to them.
The EPFO has thus taken a major step towards promoting the growth of the EPF scheme by reducing the administrative charges for the EPF. This move is expected to benefit over 5 crore EPF subscribers and will help to reduce the burden on employers. It will also help to promote the growth of the EPF scheme by making it more attractive to employers and employees.
