Hello, in this post we will discuss the detailed explanation on PF admin charges. Here, we will cover the meaning, calculation and the revised administrative charges.
What are PF admin charges?
PF admin charges are the contribution from the employer’s end. It is calculated on the basis of your Basic+DA from your salary. The breakup of EPF contribution is different for the employee and the employer. In addition to 12% of employer PF/PS contribution, the employer also has to pay other charges. The full break-up of the percentage of contribution is as seen below:
- Employee – 12% of Employee Provident Fund (EPF).
- Employer –
- 3.67% into EPF
- 8.33% into EPS
- 0.5% into EDLI
- 0.50% into PF admin charges from June 2018
Note: Minimum contribution Rs. 500 or Rs. 75 for non-contribution of PF admin charges.
EPFO has reduced the administrative charges from 0.65% to 0.50% w.e.f June 1st, 2018, and waved off admin charges for the EDLI scheme.
PF admin Charges over the years
Calculation of PF admin charges
In this example, we have considered one PF contributing employee whose Basic+DA = 15,000.
| Accounts of pf challan | Employer Contribution | Calculation |
|---|---|---|
| A/C no 1: PF contribution account | 3.67% | 15000*0.0367=550.5 |
| A/C no 2: PF admin account | 0.5% | 15000*0.005=75 |
| A/C no 10: EPS account | 8.33% | 15000*8.33%=1249.5 |
| A/C no 21: EDLI account | 0.5% | 15000*0.005=75 |
| Total | 1950 |
This completes our blog of PF/EPF admin charges. If you have any questions, drop them in the comment section below.
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123 Comments
Sir, what is the min charge at A/c No 2 (Admn charges) if firm is having no transaction. ( While submitting NIL report) presently Jan/2021
I saw somewhere that there is min charges of Rs. 500/- to A/c No 2. Kindly mention it is effective from which month and presently applicable Jan /2021
Hello sir,
My query is if in organization if 3 employees and all employees basic salary is greater than 15000 pf is not applicable (PF applied under voluntary purpose).
But pf number is enrolled as mandatory requirement in various tenders so what is further procedure need to do for filling nil return.
Please share the amount of minimum admin charges (for account no.2,21,22) applicable.
Every month nil return has to be filed. The minimum charges are
A/c 02 – Rs. 75
A/c 21 – Rs. 25