PF admin charges

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 is the contribution from 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 waived off admin charges for 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:

Icons made by Vectors Market from www.flaticon.com is licensed by CC 3.0 BY

Auto calculate PF admin charges

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

Check out Saral PayPack for more details.

Share On:

58 thoughts on “PF Admin charges – explanation with contribution rates

  1. EPF office in Chennai Royapettah is insisting for 0.5% or minimum of Rs.500 (whichever is higher) as administrative charges. Please clarify whether they or right.
    Thanks.
    Sukumaran
    9840033333

  2. If My Gross Salary Is Greater Than Rs 15000 (for example Rs 24951) then adm. charges will be calculated on 15000 or 24951.. Please Clarify

  3. October 13, 2018 at 1:07 pm
    If My Gross Salary Is Greater Than Rs 15000 (for example Rs 24951) then adm. charges will be calculated on 15000 or 24951.. Please Clarify

  4. Hi Sir,

    Total wages: Rs.16,18,192/-
    EDLI contribution @ 0.5% : Rs. 8,091/-

    But, the ECR receipt challan is showing Rs. 8,105/- as EDLI contribution amount. How? please advice.

    Thanks,
    Kavya

    1. Hi Kavya,
      The EDLI contribution is the account on each employee share rounded off to the nearest rupee. This may be the reason for the difference of amount shown.

      1. Thank you Sir. With this month’s payment, i got to know that, as you have mentioned, the difference is due to the rounding off.
        And,
        Is A/C no. 2 of 0.5% on the Total gross wages OR total EPF wages? or Is it also calculated on account of each employee share rounded off to the nearest rupee?
        Please advice.

        Thanks,
        Kavya

  5. Hllo sir,
    Sir its my humbled request to you that plz…tell me the all factors of EMPLOYER CONTRIBUTION and i also want to know which subscribstion is mandotory for me as a employer

    Apart from admin charge there is inspection charge too, is inspection charge is mandatory for employer or not.
    Regards.
    Dilwar
    dilwarhussain024@gmail.com

  6. If arrear of april and may 2018 is deposited in the return for June 2018, whether pf admin charges should be charged at .65% or .50%? Please tell

  7. If I generate more than 3 challan in a month then is it compulsory to pay administrative charge for every challan? Sir you told Adm. charge for EDLI scheme is waived off from June 2018. Then Why you show it in the table “calculation of PF administrative charge’? it is confusing.

  8. Hi Sir,

    If, Total Wages is Rs. 16,00,000/-
    EDLI Contribution (Account No. 21) will be 0.5% on each employee’s pay.

    Whether EPF Administration Charges (Account No.2) is also calculated at 0.5% on each employee’s pay OR on the total wages? Please advice.

    Thanks,
    Kavya

  9. Hello Sir,
    Please advise if there is any penal damages for paying less than the Minimum Admin charges of Rs. 500/- For Eg: We paid throughout 17-18, PF Admin charges less than 500 and EDLI admin charges less than 200. So want to understand that PF office will ask for any interest or penalty on this less payment.

    Please advise at the earliest

    1. Hi Lakshmi,
      Interest will be applicable as below
      For 0 — 2 months delay – @ 5 % p.a. For 2 — 4 months delay – @10 % p.a. For 4 — 6 months delay – @ 15 % p.a. For delay above 6 months – @ 25 % p.a. (subject to a maximum of 100%)

      Above this, the department may also levy penalty upto Rs. 5000

  10. Dear Sir, Our two staff respectively have actually left our service on 30-09-2018 and due to clerical error the PF dues have been remitted for them up to 31-12-2018. what shall we do sir?

  11. How can i file the EPF Return for the EPF salary of above Rs.15,000/-.i.e.I need to pay PF amount of morethan Rs.1,800/- P.M.How can i file the return, its getting error when i file it, If i have entered above 15,000 EPF salary.Please help on this regard.

    1. Hi Ekanathan,
      you can use a software to generate the required return formate and upload it to the PF Employer Login. Else, you can also do the manual entry in PF Employer login and submit the details.

  12. Hello Sir,

    My Basic+ DA is Rs. 60,000/- per month. My PF contribution is 12%. How much PF admin and EDLI will be charged. Kindly explain

    1. Hi Hemant,
      Please note that PF admin & EDLI is charged to the employer and not to the employee. Hence, you are not required to pay the same.

  13. Sir please replay
    EDLI contribution =
    EPF inspection charge =
    EDLI Inspection charge =
    Rate of contribution=
    EPF Admin charge=
    EDLI admin charge=

  14. Hello Sir,

    From the above example did you mentioned the ,
    A/C no 1: PF contribution account 3.67% 15000*0.0367=550.5 – Do we need to rounded off this to nearest value which is 551!!
    A/C no 10: EPS account 8.33% 15000*8.33%=1249.5-Do we need to rounded off this to nearest value which is 1250!!

    Thanks,
    Uma

    1. Hi Uma,

      With respect to Employer contribution,

      A/c No. 10 is EPS contribution @ 8.33%
      15000*8.33%=1249.5 ; round this to 1250

      A/c No. 1 is difference between EPF & EPS @ 3.67%
      15000*3.67%=550 (i .e; 1800-1250)

      Regards,
      KAVYA

    2. Hi Uma,
      The PF amount will be 550 & PS amount will be 1250. This is because PS is calculated first i.e 8.33% coming to 1250 on round-off. PF amount will be 1800-1250 = 550

  15. Hi Sir,

    1] An employee Basic salary = Rs.20,000/-
    EPF ceiling =Rs.15,000/-
    In a month of 30days, this particular employee is absent for 3 days i.e.; 20,000/30*27 = Rs.18,000/-
    Now. whether PF is considered at 15000*12% (OR) 15000/30*27 *12% i.e; is it Rs.1800 (OR) Rs.1620 ?

    2] An employee Gross salary is Rs.50,000/- i.e (Basic +DA+ HRA +special allowance)
    In the ECR file, in the column of Gross wages, should I mention Rs. 50,000/- (OR) Basic +DA only ?

    Thanks,
    Kavya

    1. Hi Sreekumar,
      A/c No 2 – 0.5% of Contribution or Rs. 500 (Rs. 75 for non-contibution month)
      A/c No 21 – 0.5% of Contribution
      A/c No 22 – Not Applicable

  16. HI,

    If we pay Rs 500/- in account no 2 in case of nil return (functional), How much for ac no 22 ? (for the year 2016 and 2018)

    Regards,
    Lakshmi

  17. Can some one clarify : Are “Administrative Charges” payable Separately on both the Components of Provident Fund Contributions i.e; Separately on Employers Contribution and Separately on Employees Contribution. for example: Rate of Admn. Charges( e.g; 5%) /100 X Employers Contribution & 5%/100 X Employees Contribution.
    OR
    Is it chargeable in total by taking Employers Contribution and Employees Contribution as a Single Component. For example : 5%/100 X Employers Contribution + Employees Contribution.
    OR : 10% AS A WHOLE ON ON EMPLOYERS AND EMPLOYEES CONTRIBUTION.

  18. Hi Sir,

    Is admin charges of 0.50% is charged on Wage limit of Rs.15,000/- or on actual Wage e.g. Rs.20,000/- on which employee has contributed VPF i.e., Rs.2400/-.

  19. Sir maine first ecr upload 2 employees ki dated 10-05-2019 ko challan jama karaya tha par aaj tak employees ki passbook me paisa nahi aaya?

  20. Hi,
    Sir while preparing the epf challan, will the admin charge in ac 2, imposed 0.50% of EPF contribution or on total gross salary?
    In case of salary is more than 15000, what will be the scenario for employee epf contribution, employer epf and eps contribution? Plz clarify with the example on the salary 15500

    1. The 0.50% will be on Total PF contribution.
      If salary exceeds 15000, then based on the company policy, you can restrict the contribution of PF on 15000 only or on the actual amount.
      In case of restricted contribution, PF will be calculated on 15000 i.e 12% of 15000 = 1800 which is the Employee contribution. Employer contribution will be split as: EPF=550 and EPS=1250.
      In case of non-restricted contribution, PF will be on actual contribution i.e 12% of 15500 = 1860 which is the Employee contribution. Employer contribution will be split as: EPF=610 and EPS=1250.
      EPS contribution will be a maximum of 1250. Any extra contribution will go into EPF.

  21. Dear Sir / Madam,
    Following details are correct / wrong…please reply..

    BASIC + DA = 20000
    ACCOUNTS OF PF CHALLAN EMPLOYER CONTRIBUTION CALCULATION
    A/C no 1: PF contribution account 3.67% 734 – ROUND(20000*3.67%,0)
    A/C no 2: PF admin account 0.50% 100 – ROUND(20000*0.5%,0)
    A/C no 10: EPS account 8.33% 1250 ROUND – ((20000-5000)*8.33%,0)
    A/C no 21: EDLI account 0.50% 100 ROUND – (20000*0.5%,0)
    Total 2184

    1. Hi Narayan,
      Calculations are correct, with some considerations like PF admin Charge is actual of Rs. 500 whichever is least, EPS is Rs. 1250 or actual whichever is least i.e., 15000*8.33% by default, EDLI is Rs. 75 or actual whichever is least i.e., 15000*0.5% by default.

  22. Dear Sir,
    A private limited company incorporated 2011.. Registered under the PF November 2018 ..We paid the PF unto May 2019…. we have 25 employees, we paid A/C no 2: PF admin account 500 or 0.50% which is higher but we received the Notice from PF office , for A/C no 2: PF admin account shortage 4500 … but we correctly paid I could not understand why they send the notice …….I verified ECR please kindly send a solution

    1. Dear Sir,
      A private limited company incorporated 2011.. Registered under the PF November 2018 ..We paid the PF unto May 2019…. we have 25 employees, we paid A/C no 2: PF admin account 500 or 0.50% which is higher but we received the Notice from PF office , for A/C no 2: PF admin account shortage 4500 … but we correctly paid I could not understand why they send the notice …….I verified ECR please kindly send a solution

  23. Just Wanted to say thank you Saral team for useful information and answering questions of different users…above answer cleared my doubts…thank you!

  24. Sir,
    Pl give the latest ratio for administration charge.
    We are remitting the administration charge as 0.5% on A/c No.21 ,
    0.85% on A/c No. 2 and RS.200/- on A/c No.22.
    Pl give the latest ratio for administration charge.

Leave a Reply

Your email address will not be published. Required fields are marked *