EPFO Cuts Administrative Charges from 0.65% to 0.5%

EPFO Cuts Administrative Charges from 0.65% to 0.5% |EPFO Cuts Administrative Charges |EPFO Administrative Charges EPFO Cuts Administrative Charges from 0.65% to 0.5%. As a result, over 5 Lakh Employers Together Would Save Around Rs 900 Crore Annually, With Effect From June 1, 2018 Now over 5 lakh employers together would save around Rs900 crore annually following the retirement fund body EPFOs decision to cut administrative charges, with effect from 1 June, 2018. The Employees Provident Fund Organisations (EPFO) trustees had decided to cut the administrative charges to 0.50% from 0.65% of total wage paid by employers in its meeting on 21 February, 2018. The labour ministry has notified the decision to cut administrative charges, which would be effective from June 1, 2018. This will encourage employers to formalise their workers employment by bringing them under the ambit of social security schemes run by the EPFO, the retirement fund bodys central provident fund commissioner V.P. Joy toldPTI. Refer Below notification:

MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 21st May, 2018

S.O. 2011(E).In exercise of the powers conferred by the Explanation to paragraph 30 read with paragraph 39 of the Employees' Provident Funds Scheme, 1952, and in supersession of the notification of the Government of India in the Ministry of Labour and Employment published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 827(E), dated the 15th March, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, after consulting the Central Board and having regard to the resources of the Employees Provident Fund available for meeting its normal administrative expenses, hereby fixes the administrative charges payable by the employer for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme with effect from 1st June, 2018 at 0.50 per cent (zero point five zero per cent.) of the pay as referred to in the said paragraphs subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments. 2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the administrative charges payable in respect of the period up to and inclusive of the 31st May, 2018 in respect of which the notification referred to in paragraph 1 herein shall continue to apply as if the same had not been superseded.

[F. No. S-35012/01/2014-SS-II] R. K. GUPTA, Jt. Secy.