PF Administrative Charged Reduced

The Government of India issues notification on reducing the administrative charges under the Employees' Provident Funds Scheme, 1952	Tax Knowledge & Solution

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.

EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges from nearly eight lakh employers coming under the ambit of its social security schemes, effective from January 1^st 2015.

The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification.

The decision in this regard was taken by the EPFO';s apex decision making body, the Central Board of Trustees (CBT), in February last year in its meeting.

According to the notification, the minimum monthly administrative charges will be Rs 75 for every non-functional firm having no (PF) contributing member and Rs 500 for any other establishments.

As many as 7.96 lakh firms were covered under the various social security schemes run by the EPFO as on March 31, 2014.