PF Admin charges – explanation with contribution rates
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PF Admin charges – explanation with contribution rates

Hello, in this post we will discuss the detailed explanation on PF admin charges. Here, we will cover the meaning, calculation and the revised administrative charges.

What are PF admin charges?

PF admin charges are the contribution from the employer’s end. It is calculated on the basis of your Basic+DA from your salary. The breakup of EPF contribution is different for the employee and the employer. In addition to 12% of employer PF/PS contribution, the employer also has to pay other charges. The full break-up of the percentage of contribution is as seen below:

  • Employee – 12% of  Employee Provident Fund (EPF).
  • Employer
    • 3.67% into EPF
    • 8.33% into EPS
    • 0.5% into EDLI
    • 0.50% into PF admin charges from June 2018

Note: Minimum contribution Rs. 500 or Rs. 75 for non-contribution of PF admin charges.

EPFO has reduced the administrative charges from 0.65% to 0.50% w.e.f June 1st, 2018, and waved off admin charges for the EDLI scheme.

PF admin Charges over the years

PF admin charges, admin charges for PF, PF admin charges chart, PF admin charge rate

Calculation of PF admin charges

In this example, we have considered one PF contributing employee whose Basic+DA = 15,000.

Accounts of pf challan Employer Contribution Calculation
A/C no 1: PF contribution account 3.67% 15000*0.0367=550.5
A/C no 2: PF admin account 0.5% 15000*0.005=75
A/C no 10: EPS account 8.33% 15000*8.33%=1249.5
A/C no 21: EDLI account 0.5%  15000*0.005=75
Total 1950

This completes our blog of PF/EPF admin charges. If you have any questions, drop them in the comment section below.

Read the notification here.

Related:

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Did you know you can automatically deduct PF admin charges in our payroll software?

Check out Saral PayPack for more details.

135 Comments

  • our total salary is Rs.21300
    what is rate of % a/cNo.21 payable — 0.05% of total wages or minimum of Rs.500 payable ??

    • If the amount mentioned is total salary of all employees, then Rs. 500 is payable.

  • Sir,
    we have 4 components in Salary Basic + HRA+TA+Spl Allowance, if Basic is Above 15K and Gross Salary is above 65K, Which amt to be considered for Gross Wages, and if Basic is below 15K and Gross Salary is Above 25K, which amt to be considered for Gross wages and EPF, EPS & EDLI Wages, kindly advice

    • Gross Wages for PF her to be considered is Basic+TA+Spl Allowance.

  • Sir, when I am paying arrears. Is it mandatory to pay admin charges as I dont see A/C 2 not populating by default while generating EPF arrear challana ? Please advise.

    • Yes, Admin charges are applicable on Arrears salary too.

  • What should be the salary disbursal date if there are no employer & employee contributions in a particular month?

    • There is no requirement of salary disbursement date in case of nil return.

  • If there are no employer & employee contributions in a month, should we still pay Rs.500/- for a/c 2 and Rs.200/- for a/c 22 ?

    • A/c 2 PF admin charges of Rs. 500 has to be paid.

      • I guess that if there are no employees in particular month then in Ac No 2 one has to just make a payment of Rs 75 in administration charges.

  • Why is it showing that we have to accept the declaration form of PMGKY even if we have not paid salaries to our employees due to lack of funds, in EPFO site ? How to file nil returns without accepting the declaration?

    • The declaration acceptance is shown only for eligible Employer based on your Sept/2019 to Feb/2020 ECR filing. Hence, accepting the declaration is mandatory.

  • Sir i took esi and epf code for tender purpose. However we have not been awarded with the tender. How much admin charge do i have to pay?

    • Yes, You will ahve to make NIL return with payment of Min Admin Charges i.e. EPF Admin Charge of Rs. 75 and EDLI admin Charge of Rs. 25.

  • Dear Sir/Madam,
    I work in an educational institution. It lodged a case against epfo on the matter of enforcing for epf contribution. Now, it got finasiled and now we have to give detailed salary structure with contributions towards pf, eps, edli, respective administrative charges and also interest accrued since 1989. We got all the required information except regarding epf administrative charges since 1989 to 1998. One thing I want a clarification regarding the epf contribution from 1989 t0 1991, This I got 8.33%. Kindly help us.

    • Admin Charges from 1989 to 1991 under A/c 2 is 0.65%, A/c 21 is 0.5% and A/c 22 is 0.1% of the wages

  • We are remitting PF contribution for our employees in 3 challans for same month. If actual admin charges (A/C 2) for each 3 challan is less than Rs.100/-,
    now we have to pay minimum admin charges Rs.500 for Each 3 challans or what. Please clarify.

    • Yes. Admin Charges are accounted challan wise. Hence, you will have to minimum of Rs. 500 per Challan.

  • ACTIVE DIGITAL SIGNATURE CERTIFICATE NOT SHOWS IN THE MAIN TIME WHEN KYC APPROVE BY EMPLOYER. BUT WHY SHOW THIS GREAT PROBLEM. BUT WHY SOLVE THAT VERY VERY VITAL PROBLEM.

  • Hello sir,
    My query is if in organization if 3 employees and all employees basic salary is greater than 15000 pf is not applicable (PF applied under voluntary purpose).
    But pf number is enrolled as mandatory requirement in various tenders so what is further procedure need to do for filling nil return.
    Please share the amount of minimum admin charges (for account no.2,21,22) applicable.

    • Every month nil return has to be filed. The minimum charges are
      A/c 02 – Rs. 75
      A/c 21 – Rs. 25

  • Sir, what is the min charge at A/c No 2 (Admn charges) if firm is having no transaction. ( While submitting NIL report) presently Jan/2021
    I saw somewhere that there is min charges of Rs. 500/- to A/c No 2. Kindly mention it is effective from which month and presently applicable Jan /2021

  • Hi sir,
    i am calculating salary from 24 to 25th , But employees worked upto 31st How i can pay ESIC and PF for that employee ,LWD 31st

    • You will have to considere the salary paid and make the relevant contribution. Here, only the month matters and the day duration

  • Hi Sir, there is appraisal arrear for four months for 4 employees of do we need to pay PF admin charge @0.5 or do we pay 500/- min, we have already paid the admin charges in actual months @0.5

    • This is considered as Supplementary PF which does not have Admin Charges.

  • Hi sir we have EPF registration but not filled monthly contribution we dont have staffs what we can do

    • Even if you do not have contibution, you have to file NIL return every month

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