Reduction in Administrative Costs
EDLI Administrative cost – Kept in Abeyance
Each month PF Department collects from employers FOUR components.
A – Contribution towards a Corpus Fund. The contribution is the aggregate of Employee and Employers share.
B – Contributions towards a Pension Scheme
C – Insurance Premia for a Deposit Linked Insurance Scheme EDLI and
D – Administrative charges.
The admin charges which was set at 0.85% of wages is now being reduced to 0.65% w.e.f. April 1st, 2017. As regards the EDLI Administrative contribution, is being kept in abeyance w.e.f. April 1st until further notified. This is a welcome and pleasant change of the Government reducing rates, although it may not be very material.
Read also, Govt hikes minimum life insurance for EPF-covered employees
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