The Ministry of Labour and Employment has reduced the PF administrative charges with effect from 01-June-2018. You can read the gazette notification attached here. The highlights of the notification are as follows:
1. The EPF administrative charge shall be 0.50% of the total PF wage from 01-June-2018. The earlier administrative charge was 0.65% (until 31-May-2018). Consequently, the administrative charges to be remitted under A/C No. 2 (PF admin account) shall undergo a change.
2. In case of non-functional establishments (covered under PF) with no contributing member, an administrative charge of Rs 75 per month shall be payable. A non-functional establishment is an organization which is not operational and hence may not have any wages payable to employees.
3. In case of functional establishments, if the administrative charge (calculated at 0.50%), is less than Rs 500, then the administrative charge to be remitted shall be Rs 500. For example, if the PF wages for a month are Rs 70,000, then the administrative charges, calculated as 0.50% of wages, work out to Rs 350 (which is less than Rs 500). Such an establishment has to remit Rs 500 towards administrative charges.
4. The notification clarifies that the new administrative charges are applicable only from the wage period starting June 2018. In other words, administrative charges for periods up to 31-May-2018 should be calculated as per the earlier rates.
Please feel free to contact us for any clarification regarding Compliance (E-mail: Compliance@bayballshr.com).
From India, Chennai
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251. The EPF administrative charge shall be 0.50% of the total PF wage from 01-June-2018. The earlier administrative charge was 0.65% (until 31-May-2018). Consequently, the administrative charges to be remitted under A/C No. 2 (PF admin account) shall undergo a change.
2. In case of non-functional establishments (covered under PF) with no contributing member, an administrative charge of Rs 75 per month shall be payable. A non-functional establishment is an organization which is not operational and hence may not have any wages payable to employees.
3. In case of functional establishments, if the administrative charge (calculated at 0.50%), is less than Rs 500, then the administrative charge to be remitted shall be Rs 500. For example, if the PF wages for a month are Rs 70,000, then the administrative charges, calculated as 0.50% of wages, work out to Rs 350 (which is less than Rs 500). Such an establishment has to remit Rs 500 towards administrative charges.
4. The notification clarifies that the new administrative charges are applicable only from the wage period starting June 2018. In other words, administrative charges for periods up to 31-May-2018 should be calculated as per the earlier rates.
Please feel free to contact us for any clarification regarding Compliance (E-mail: Compliance@bayballshr.com).
From India, Chennai
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ℹ️ The reduction in PF administrative charges from 0.65% to 0.50% effective 01-June-2018 by the Ministry of Labour and Employment brings about changes in the calculation and remittance of administrative charges for establishments covered under the EPF scheme.
🔔 Key Points:
- The EPF administrative charge is now set at 0.50% of the total PF wage, down from the previous 0.65%.
- For non-functional establishments without contributing members, a fixed administrative charge of Rs 75 per month applies.
- Functional establishments may have to remit a minimum of Rs 500 if the calculated charge at 0.50% of wages falls below this threshold.
🗍 Effective Date Clarification:
- The revised administrative charges are applicable starting June 2018. Any periods before this date should be calculated using the previous rates.
🕵️ Action Steps:
1. Review Your Establishment's PF Records:
- Check the PF wage details and the corresponding administrative charges for accuracy and compliance.
2. Calculate Administrative Charges Correctly:
- Apply the new rate of 0.50% for wage periods from June 2018 onwards.
3. Adjust Remittances Accordingly:
- Ensure that the administrative charges are remitted correctly as per the new rates.
4. Address Non-Functional Establishment Scenarios:
- For non-functional establishments, be aware of the fixed administrative charge of Rs 75 per month.
📏 For any specific queries or assistance related to compliance, you can reach out to Compliance@bayballshr.com.
From India, Gurugram
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🔔 Key Points:
- The EPF administrative charge is now set at 0.50% of the total PF wage, down from the previous 0.65%.
- For non-functional establishments without contributing members, a fixed administrative charge of Rs 75 per month applies.
- Functional establishments may have to remit a minimum of Rs 500 if the calculated charge at 0.50% of wages falls below this threshold.
🗍 Effective Date Clarification:
- The revised administrative charges are applicable starting June 2018. Any periods before this date should be calculated using the previous rates.
🕵️ Action Steps:
1. Review Your Establishment's PF Records:
- Check the PF wage details and the corresponding administrative charges for accuracy and compliance.
2. Calculate Administrative Charges Correctly:
- Apply the new rate of 0.50% for wage periods from June 2018 onwards.
3. Adjust Remittances Accordingly:
- Ensure that the administrative charges are remitted correctly as per the new rates.
4. Address Non-Functional Establishment Scenarios:
- For non-functional establishments, be aware of the fixed administrative charge of Rs 75 per month.
📏 For any specific queries or assistance related to compliance, you can reach out to Compliance@bayballshr.com.
From India, Gurugram
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Reduction of PF Admin Charges.pdf