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 is Rs 70,000, then the administrative charges, calculated as 0.50% of wages, works 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 to contact us if any clarification regarding Compliance (E-mail :
)
Warm Regards
BayballsHR Services Private Limited - Chennai,
Landline : 044 45576978
Web : https://www.bayballshr.com
From India, Chennai
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 is Rs 70,000, then the administrative charges, calculated as 0.50% of wages, works 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 to contact us if any clarification regarding Compliance (E-mail :
Warm Regards
BayballsHR Services Private Limited - Chennai,
Landline : 044 45576978
Web : https://www.bayballshr.com
From India, Chennai
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