As an EPF-enabled firm, do we need to pay a straight 0.5% + 0.5% as the PF admin fee?
We have 12% employee contribution and 12% employer contribution, and we are adding these two components only in the CTC. Why the extra 1% as an admin charge? Do we need to add that too in CTC as it is a cost that we incur?
How do other firms handle this effectively? What is the best way as there is no limit on the admin charges?
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2We have 12% employee contribution and 12% employer contribution, and we are adding these two components only in the CTC. Why the extra 1% as an admin charge? Do we need to add that too in CTC as it is a cost that we incur?
How do other firms handle this effectively? What is the best way as there is no limit on the admin charges?
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The admin fee has changed. Please check whether you are still paying 1%. Whether to add it to the CTC is an option you have, as there is no concept of CTC in law. So you are free to do anything.
However, do not use that to reduce the take-home salary of those who are already getting a certain amount, as it will be a violation of the law. You may add it to CTC in the next round of increments if you wish. But do you really want to be petty about a 1% cost the company incurs?
From India, Mumbai
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However, do not use that to reduce the take-home salary of those who are already getting a certain amount, as it will be a violation of the law. You may add it to CTC in the next round of increments if you wish. But do you really want to be petty about a 1% cost the company incurs?
From India, Mumbai
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Hi @sasmumbai - it's not about 1%; there are multiple employees, and we wanted to make sure it is in line, and we are keeping account of all expenses.
Also, I request you to please help with the update of admin charges (with some government links if possible).
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Also, I request you to please help with the update of admin charges (with some government links if possible).
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About the current rate, check on the PF portal. It is automatically corrected.
I don't really understand how CTC working affects accounting, but as I said, it's your choice how you work out the CTC. So you are free to add it there. Accounting (to the best of my knowledge) has nothing to do with CTC, and it is an internal matrix of HR.
If you can explain how it affects you, I will be happy to add to my knowledge. In the meanwhile, I appreciate your quick response to my post, which is always a pleasant surprise and adds to learning.
From India, Mumbai
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I don't really understand how CTC working affects accounting, but as I said, it's your choice how you work out the CTC. So you are free to add it there. Accounting (to the best of my knowledge) has nothing to do with CTC, and it is an internal matrix of HR.
If you can explain how it affects you, I will be happy to add to my knowledge. In the meanwhile, I appreciate your quick response to my post, which is always a pleasant surprise and adds to learning.
From India, Mumbai
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Hi Saswata - it's not much about accounting, but we are putting PF admin in a different expense account for now.
I feel Citehr is a platform where I can ask and take suggestions from multiple other professionals and experts.
The current rate is not much, but $150 max for each employee, so it should not create an issue on the amount side. However, as a company, we should be aware of how other firms are handling this.
Also, thanks for the quick response.
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I feel Citehr is a platform where I can ask and take suggestions from multiple other professionals and experts.
The current rate is not much, but $150 max for each employee, so it should not create an issue on the amount side. However, as a company, we should be aware of how other firms are handling this.
Also, thanks for the quick response.
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