EPFO administrative charges to reduce
The Employees’ Provident Fund Organisation’s (EPFO) trustees decide to cut the administrative charges to 0.50 per cent from 0.65 per cent of total wage paid by employers.“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,” said the retirement fund body’s Central Provident Fund Commissioner V P Joy.
The administrative charges would be reduced in view of its expanding business and high recovery of such fees.
According to the EPFO estimates, the employers would save in total around Rs.900 crore annually after this move.