Announcement - Reduction in EPF Administrative Charges and Non-Levy of EDLI Scheme Charges

Subject: Reduction of Administrative Charges from 0.85% to 0.65% for the EPF Scheme 1952, and Suspension of Administrative Charges for the EDLI Scheme 1976 - Reg.

Reference: Circular posted on the EPFO website, Office Orders & Circulars sl. no.693.

Dear Sir,

As of 01.04.2017, the administrative charges payable by employers for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the EPF Scheme, 1952, have been reduced from 0.85% to 0.65% of the pay referred to in the mentioned paragraphs. This is subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having non-contributory members and five hundred rupees per month per establishment for all other establishments.

In addition, please note that, for the time being, no sum will be payable by the employer in relation to his employees towards the Deposit-Linked Insurance Fund for the administration expenses of the Employees\' Deposit-Linked Insurance Scheme, 1976, except for the expenses towards the cost of any benefits provided by or under that scheme.

Yours sincerely,

Regional P.F. Commissioner

EPFO-Regional Office, Tambaram

The reduction in the rate of administrative charges from 0.85% to 0.65% of the pay towards the EPF Scheme, 1952, and the non-levy of administrative charges towards the EDLI Scheme, 1976, as per the circular posted on the EPFO website, Office Orders & Circulars sl. no.693, is a significant update for employers in India, particularly in Madras.

- Employers are now required to pay 0.65% of the pay towards the EPF Scheme, 1952, effective from 01.04.2017, subject to minimum amounts based on the type of establishment.
- For non-functional establishments with non-contributory members, the minimum sum is seventy-five rupees per month, while for other establishments, it is five hundred rupees per month per establishment.
- Additionally, employers are not currently required to pay any sum towards the Deposit-Linked Insurance Fund for the administration of the Employees' Deposit-Linked Insurance Scheme, 1976, except for expenses related to benefits provided under that scheme.

This amendment aims to reduce the financial burden on employers while ensuring the continued support for employee welfare through these schemes. Employers in Madras and across India should update their payroll systems and compliance processes accordingly to reflect these changes accurately.