Reduction of Administrative Charges of EPF from 1.10% to 0.85 % W.E.F 01.01.2015

Recently The Ministry of Labour and employment government of India has issued notification to revise the rate of administrative charges under the EPFS. The changes are effective from 01.01.2015.

The Government of India issues notification No. S.O. 323(E) and S.O. 324(E) both dated 02.02.2015,  on reducing the administrative charges under the Employees’ Provident Funds Scheme, 1952. The Ministry of Labour and Employment, Government of India, has issued a notification to revise the rate of administrative charges under the Employees’ Provident Funds Scheme, 1952. The changes will be effective from 1 January 2015 so administration charges payable upto 31.12.2014 will be levied at old rate.

EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges under the ambit of its social security schemes, effective from January 1st 2015. The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification No. S.O. 323(E) and S.O. 324(E) both dated 02.02.2015.

Below is the Summary of P.F Rates.

Various accounts of PF Challan	OLD Rate		New rates W.e.f 1-Jan-15
	Employee	Employer	Employee	Employer
A/c No 1: PF contribution Account	12%	3.67%	12%	3.67%
A/c No 2: PF Admin account		1.10%		0.85%
A/c No 10: EPS account		8.33%		8.33%
A/c No 21: EDLIS account		o.50%		o.50%
A/c No 22: EDLIS admin account		0.01%		0.01%
Net Rate	12%	13.61%*	12%	13.36%*

To Download the official Notification click here