How are the administrative fees for the Provident Fund calculated?

Article author
Elaine Small
  • Updated

Administrative fees are charges imposed on employers for their contributions to the provident fund. These charges are determined based on a percentage of the employee's basic salary. There are additional fees that the employer is responsible for covering alongside the 12% contribution made towards the Provident Fund/Pension Scheme.

The fees are calculated in one of two ways, depending on the employer contribution cost amount per employee. 

Senario A

Employer contributions are 1800 INR per employee:

  • Admin fee = 150 INR

Scenario B

Employer contributions are above 1800 INR per employee:

  • Basic salary = Half of the general base salary (excluding special allowance and HRA)
  • Recalculated fee = (Base Salary/2 * 0.5%) + Fixed 75 INR processing fee
  • Total admin fee = recalculated fee

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