How are PF Other Charges, EDLI and EPF administration charges calculated?

PF Other Charges consist of EDLI Contribution and EPF Admin Charges.

PF Other Charges = EDLI Contribution + EPF Admin Charges

EDLI Contribution

EDLI is calculated at 0.50% of PF Wages, subject to a wage ceiling of ₹15,000.

EDLI = 0.50% × Minimum of (PF Wages or ₹15,000)

Therefore, the maximum EDLI contribution is ₹75 per month per employee.

EPF Admin Charges

EPF Admin Charges are calculated at 0.50% of the applicable PF Wages.

EPF Admin Charges = 0.50% × PF Wages

When PF Wages Are ₹15,000 or Below

When PF Wages are ₹15,000 or below, both EDLI and EPF Admin Charges are calculated on the same PF Wages.

Example: PF Wages = ₹10,000

• EDLI = ₹10,000 × 0.50% = ₹50
• EPF Admin Charges = ₹10,000 × 0.50% = ₹50
• PF Other Charges = ₹100

Example: PF Wages = ₹15,000

• EDLI = ₹15,000 × 0.50% = ₹75
• EPF Admin Charges = ₹15,000 × 0.50% = ₹75
• PF Other Charges = ₹150

When PF Wages Are Above ₹15,000

When PF Wages exceed ₹15,000, EDLI is restricted to the ₹15,000 wage ceiling, while EPF Admin Charges continue to be calculated on the applicable PF Wages.

Example: PF Wages = ₹20,000

• EDLI = ₹15,000 × 0.50% = ₹75
• EPF Admin Charges = ₹20,000 × 0.50% = ₹100
• PF Other Charges = ₹175

Therefore, EDLI and EPF Admin Charges are equal when PF Wages are up to ₹15,000. They may differ when PF Wages exceed ₹15,000.

Example: PF Wages Include Basic + Special Allowance

If PF is calculated on Basic Salary + Special Allowance, the combined PF-eligible amount is considered as PF Wages.

For example:

• Basic Salary = ₹69,208
• Special Allowance = ₹44,374
• PF Wages = ₹1,13,582

EDLI: 
₹15,000 × 0.50% = ₹75

EPF Admin Charges: 
₹1,13,582 × 0.50% = ₹567.91 ≈ ₹568

Total PF Other Charges: 
₹75 + ₹568 = ₹643 per month