Should We Calculate EDLI Admin Charges (PF Related) On Total EDLI Wages Of The Company Or On The Individual Contribution Of The Member ?

Should we calculate EDLI Admin charges (PF related) on the total EDLI Wages of the company or on the individual contribution of the member?

For example: Total EDLI Wages of 5 members amount to 41,951/-. If we calculate based on total wages, the charges will be 0.01% = 4/-. However, if we calculate based on individual wages:
- 15,000 = 2
- 15,000 = 2
- 5,661 = 1
- 6,290 = 1
- 41,951 = 6
It will amount to Rs 6/-

From the first method, we get Rs 4/-, and in the second method, we get Rs 6/-. Which one is correct? Can anybody help?

EDLI and total PF are charged on an individual basis. Therefore, calculating on a company basis would be faulty. Additionally, your contributions are recorded by the department on an individual basis. Consequently, they may request payment for any discrepancies.

Yes, I know EDLI (0.5%) and PF (12%) contributions must be on an individual basis. But what about EPF Admin Charges (0.85%) and EDLI Admin Charges (0.01%) ?

That's what is said: each department manages employee records separately, which leads to individual charges. Therefore, payments are made on an employee basis.

EPF ADMINISTRATIVE CHARGES PAYABLE BY THE EMPLOYERS OF UN-EXEMPTED

From 01.01.2015 onwards, 0.85% of the total pay on which contributions are payable. The minimum administrative charges payable per month per establishment are Rs. 500.

EPF INSPECTION CHARGES PAYABLE BY THE EMPLOYERS OF EXEMPTED ESTABLISHMENTS

Charges are applicable on the total pay on which contributions are payable.

EDLI is now calculated by the department itself. The employer has to enter in ECR just the gross wages, EPF wages, EPS wages, and EDLI Wages (EDLI wages are equal to EPF wages) along with their contributions for EE share, EPS share, difference, and NCP days balance. EDLI charges are now calculated by the department itself at the time of challan generation.

But sir, what about EDLI administrative charges and EPF administrative charges?

EDLI Admin. Charges are calculated on the total EDLI wages, subject to a minimum payment of Rs. 200/- per month.

Please let me know if you need any further assistance.

EDLI and EDLI administration shall be calculated on total EDLI wages and not on individual salaries. In PF version-2, EDLI 0.5% is calculated by the system itself.

A/C NO2 @ 0.85% - Minimum Rs 500/- or whichever is higher on EPF wages.

A/C #22 @ 0.01% - Minimum Rs 200/- or whichever is higher on EDLI wages & Non-EPS members' wages subject to a maximum of Rs 15,000/- per employee.