Reduction in rate of Admin Charges on PF/EDLI contributions

We are forwarding herewith copies of two Notifications bearing  No. S.O.323(E) dated 2nd February, 2015 and 324 (E) dated  2nd February, 2015 issued by Government of India, Ministry of Labour and Employment New Delhi.

Note:  The above mentioned two notifications relate to un- exempted establishments i.e. establishment to which EPF Scheme , 1952 applies. These notifications do not apply to exempted/relaxed establishments which are required to pay inspection charges in place of administrative charges. Similarly notification relating to payment of administrative charges on EDLI contribution apply to only such establishment which report compliance of EDLI , Scheme, 1956 to RPFC concerned. In other words the said notification does not apply to those who subscribe to group insurance policy obtained from an approved insurer.

The following table shows the changes brought about through these notifications:

A. Notifications bearing  No. S.O.323 (E) dated 2nd February, 2015, effective from 1st January 2015
Sr. No	Existing Provisions	Revised Provision	Impact
(i)	The rate of administrative charges payable under para 38 of the EPF Scheme,1952 at present is @1.10% of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon	This rate has now been reduced to 0.85% of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon)	Thus , as a result of the issue of present notification, the liability of an employer towards payment of such administrative charges shall stand reduced  except in cases of smaller establishments who were required to pay the administrative charges @ 1.10% of pay of the members employed by them amounting to rupees less than Rs. 75/-  per month in case of non-functioning establishment  having no contributing member and Rs. 500/- per month per establishment for other establishments.
(ii)	No minimum amount was prescribed for payment of such charges	A minimum sum of Rs. 75/-  per month for every non-functional establishment having no contributory member and Rs. 500/- per month per establishment  for other establishments.
B. Notifications bearing  No. S.O. 324 (E) dated  2nd February, 2015 ,effective from 1st January 2015
Sr. No	Existing Provisions	Revised Provision	Impact
(I)	The rate of payment of administrative charges  on EDLI contribution was prescribed @ 0.01%  of aggregate of the basic wages , dearness allowance(including cash value of food concession ) and retaining allowance  if any payable by the employer in relation to his employees	This rate remains the same	The liability of the employer towards payment of such charges has now gone up in cases of establishments who were paying such charges amounting to less than Rs. 25 per month in case of non-functional establishments having no contributory members and less than Rs. 200 per month per establishment in case of other establishments.
(ii)	The minimum amount payable towards such charges was fixed earlier as Rs.2/- per month vide  notification No . S.O 237 dated 11th Jan 1989	This minimum amount has now  been enhanced to Rs 25 per month for every non-functional establishment having no contributory member and Rs. 200 per month per establishment for other establishments