EPF Rate 13.16% W. E. F 01/04/2017
Break-up of the EPF contribution
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
0.65% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
From India, Kolkata
68Break-up of the EPF contribution
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
0.65% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
From India, Kolkata
No admn charges for EDLI temporarily from 1st April '17. Total contribution payable is only 13.15 %. Regards.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; e-mail :
)
From India, Bangalore
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; e-mail :
From India, Bangalore
Dear Mr Gautam,
Thnx for sharing the useful notification.
So far as Admin charges on PF is concerned, I agree that it is revised from 0.85 to 0.65 and there are some fixed minimum charges of Rs. 75 & 500 (as applicable). Described under S.O. 827(E) of the attached notification.
I have some doubt regarding admin charges of EDLI as mentioned in S.O. 828(E) (in the same notification), that says:-
"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”
I think that denotes that no charges will be payable towards admin charges on EDLI as well (which is presently 0.01% or as the minimum amt. specified).
So as per my calculation the revised charges for employer will be
@ 13.15 % (12+0.65+0.50, being EPF + Admin Chgs on PF + EDLI Benefit Chgs respectively).
Though this is very small amount, but I deal with huge number of sub-contracting staff. So it affect our cost.
Moreover we are professional, so we need to interpret the clause in right and deep direction. So in this regard I seek the valued advice of our senior members.
From India, Delhi
Thnx for sharing the useful notification.
So far as Admin charges on PF is concerned, I agree that it is revised from 0.85 to 0.65 and there are some fixed minimum charges of Rs. 75 & 500 (as applicable). Described under S.O. 827(E) of the attached notification.
I have some doubt regarding admin charges of EDLI as mentioned in S.O. 828(E) (in the same notification), that says:-
"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”
I think that denotes that no charges will be payable towards admin charges on EDLI as well (which is presently 0.01% or as the minimum amt. specified).
So as per my calculation the revised charges for employer will be
@ 13.15 % (12+0.65+0.50, being EPF + Admin Chgs on PF + EDLI Benefit Chgs respectively).
Though this is very small amount, but I deal with huge number of sub-contracting staff. So it affect our cost.
Moreover we are professional, so we need to interpret the clause in right and deep direction. So in this regard I seek the valued advice of our senior members.
From India, Delhi
Dear Seniors,
Please explain the below line:
"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".
Also explain what is non functional establishment and why an organisation with no PF member must contribute 75 rs ( ''having no contributory member'')
From India, Mumbai
Please explain the below line:
"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".
Also explain what is non functional establishment and why an organisation with no PF member must contribute 75 rs ( ''having no contributory member'')
From India, Mumbai
Hi, I have still confusion in admin charges on EDLI, Whether We have to calculate 0.01% or It is nil, I enquired with our regional EPF office regarding this but they even don't have knowledge of this notification then how can general public will get clarification.
From India, Madurai
From India, Madurai
Dear Mr. Gokul,
That means any organization which is covered under EPFO, but not having any employee for PF deduction (there may be any reason like establishment has been closed for the time being, and no deduction towards PF) such will be treated as non-functional establishment. Such establishment need to deposit the minimum administration charges. Since there is no wages to calculate the admin charges, hence it is fixed as Rs. 75. Means if the establishment is not making any profit than either it has to surrender the Registration or has to deposit the minimum admin charges.
In the other case, if in any establishment there are very few employees whose Wages for calculating the admin charges is very low. If the amount agst admin charges comes to less than 500/- than such establishment need to deposit at least Rs. 500/- as admin charges. For example, if the PF wages for any month is Rs. 75000/-. Than the Admin chgs towards Admin charges comes to Rs. 488/- (75000*0.65/100). Such establishment have to deposit at least Rs. 500/-
Hope this will resolve your query, learned members can correct me (if there is something required).
From India, Delhi
That means any organization which is covered under EPFO, but not having any employee for PF deduction (there may be any reason like establishment has been closed for the time being, and no deduction towards PF) such will be treated as non-functional establishment. Such establishment need to deposit the minimum administration charges. Since there is no wages to calculate the admin charges, hence it is fixed as Rs. 75. Means if the establishment is not making any profit than either it has to surrender the Registration or has to deposit the minimum admin charges.
In the other case, if in any establishment there are very few employees whose Wages for calculating the admin charges is very low. If the amount agst admin charges comes to less than 500/- than such establishment need to deposit at least Rs. 500/- as admin charges. For example, if the PF wages for any month is Rs. 75000/-. Than the Admin chgs towards Admin charges comes to Rs. 488/- (75000*0.65/100). Such establishment have to deposit at least Rs. 500/-
Hope this will resolve your query, learned members can correct me (if there is something required).
From India, Delhi
Dear Sir,
Surely it has resolved my doubts. But I got some more queries:
Suppose any organisation has 20 employees with PF wage of 10000 each will they have to pay 500 for each employee or 1300 (10000*20=200000 *0.65%). ie how this charge is calculated is it on individual employee or on entire PF wage of the org.
Suppose if an organisation was eligible for PF.But with the time all the employees have earned pf wage above 15000 and org. decide to discontinue PF for them. Then in this case can org still be a member of PF by paying Rs. 75 only so that they do not have to surrender the registration and can use it in future recruitment.And can it be only rs 75 or 75* number of employees.
From India, Mumbai
Surely it has resolved my doubts. But I got some more queries:
Suppose any organisation has 20 employees with PF wage of 10000 each will they have to pay 500 for each employee or 1300 (10000*20=200000 *0.65%). ie how this charge is calculated is it on individual employee or on entire PF wage of the org.
Suppose if an organisation was eligible for PF.But with the time all the employees have earned pf wage above 15000 and org. decide to discontinue PF for them. Then in this case can org still be a member of PF by paying Rs. 75 only so that they do not have to surrender the registration and can use it in future recruitment.And can it be only rs 75 or 75* number of employees.
From India, Mumbai
Dear Mr Gokul,
As stated in the notification Rs. 500/- is the minimum amt. If as per calculation the actual amount exceeding Rs. 500/- than you have to deposit the acual amt (1300 as per your calculation). The amount is not Rs. 500 per employee rather it is total minimum amount for the month towards Admin chgs.
In next query, since only employee’s wages has exceeded the PF ceiling, but still they are member of PF. As per the Act “Excluded Employee:- The below mention to be treated as “Excluded Employee”.
(i) an employee who, withdrew the full amount of his Fund.
(ii) whose pay at the time (entitlement of become a member), exceeds Rs. 15000/- per month” A member shall continue to be member till he attains the age of 58 years or he avails the withdrawal benefit.
May be in future the wage ceiling increased, or you may need to appoint an employee under the wage ceiling. So you can’t decide to discontinue. Morever there may be any employee who is eligible to Pension, than you have to process his claim.
You can surrender the registration when the establishment is not making profit and you want to shut down it thoroughly. Yes by paying Rs. 75 only you can use it for all future references. But it is applicable only when you have NO employee as monthly contribution. If even a single person is available for monthly contribution than you have to pay Rs. 500/-.
Still I shall advice, if the case reqd., you can take some consultant's services on the matter.
From India, Delhi
As stated in the notification Rs. 500/- is the minimum amt. If as per calculation the actual amount exceeding Rs. 500/- than you have to deposit the acual amt (1300 as per your calculation). The amount is not Rs. 500 per employee rather it is total minimum amount for the month towards Admin chgs.
In next query, since only employee’s wages has exceeded the PF ceiling, but still they are member of PF. As per the Act “Excluded Employee:- The below mention to be treated as “Excluded Employee”.
(i) an employee who, withdrew the full amount of his Fund.
(ii) whose pay at the time (entitlement of become a member), exceeds Rs. 15000/- per month” A member shall continue to be member till he attains the age of 58 years or he avails the withdrawal benefit.
May be in future the wage ceiling increased, or you may need to appoint an employee under the wage ceiling. So you can’t decide to discontinue. Morever there may be any employee who is eligible to Pension, than you have to process his claim.
You can surrender the registration when the establishment is not making profit and you want to shut down it thoroughly. Yes by paying Rs. 75 only you can use it for all future references. But it is applicable only when you have NO employee as monthly contribution. If even a single person is available for monthly contribution than you have to pay Rs. 500/-.
Still I shall advice, if the case reqd., you can take some consultant's services on the matter.
From India, Delhi
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EPF's Rate History.pdf
New Rate of EPF Contribution w.e.f. 01-06-2018.jpg