AC No. 22

What is AC No. 22?

Account Number 22 (AC No. 22) refers to the Employer’s administrative charges account under the EPF Scheme, 1952. It covers administrative expenses incurred by EPFO for managing provident fund operations.

Key Features:

• Contribution Rate: 0.5% of Basic + DA, paid by the employer (revised periodically by EPFO).
• Purpose: To fund operational costs of the Employees’ Provident Fund Organization.
• Exemption: No contribution required for purely digital establishments covered under administrative fee waivers.
• Payment Cycle: Paid monthly along with PF challan.
• Regulatory Basis: Part of the EPF monthly return (ECR).

Example

If an employee’s Basic + DA is ₹20,000, the employer pays ₹20,000 × 0.5% = ₹100 towards AC No. 22 monthly.

Why AC No. 22 Matters:

It ensures smooth functioning and administration of the provident fund system, indirectly supporting efficient benefit delivery to employees.