(MENAFN- KNN India) Rate of admin charges payable by employer under EPF Scheme reduced to 0.50%
New Delhi, May 25 (KNN) The Ministry of Labour and Employment has reduced the rate of administrative charges payable by the employer under Employees' Provident Fund Scheme (EPFS) to 0.50 per cent.
The rates have been reduced from existing 0.65% to 0.50% and the proposed change is applicable with effect from June 1, 2018.
Monthly payable amount under EPF Administrative charges is a minimum of Rs 500 is payable. If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75.
According to the notification, after the amendments, the present rate of contribution under Provident Fund will be
Employees' Provident Fund
3.67%
Employees' Pension Scheme
8.33%
Employees Deposit Linked Insurance Scheme (EDLI) 0.50%
Administrative Charges under Employees' Provident Fund Scheme
0.50%
(w.e.f. 01-06-2018)
Total
13.01%
Employees Provident Fund Scheme (EPF) is the main scheme under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
It is managed under the aegis of Employees' Provident Fund Organisation (EPFO).
It covers every establishment in which 20 or more persons are employed and certain organisations are covered, subject to certain conditions and exemptions even if they employ less than 20 persons each.
Under EPF scheme, an employee must pay a certain contribution towards the scheme and an equal contribution is paid by the employer. (KNN Bureau)
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