The Ministry of Labor and Employment has implemented the decision to reduce the Employee Provident Fund (EPF) contribution from 12 per cent to 10 per cent for three months by July.
new Delhi. The Ministry of Labor and Employment has implemented the decision to reduce the Employee Provident Fund (EPF) contribution from 12 per cent to 10 per cent for three months by July. This will give increased pay to 4.3 crore organized sector employees and reduce the liability of 6.5 lakh employees struggling with liquidity in the applicable lockdown due to COVID-19. With this decision, liquidity of Rs 6,750 crore will be available in the next three months. In the notification issued on Monday by the Ministry of Labor, it has been said that the reduction in EPF contribution will be applicable for May, June and July 2020.
With the implementation of this decision by the Ministry of Labor, in June, July and August, the salary of the employees will reach the increased salary. With this, the EPF contributions of employees, EPF account of June, July and August will be reduced. The central government has decided to amend the notification of 9 April 1997 to provide more liquidity in the hands of employees and employers.
The finance minister announced last week
Last week, Finance Minister Nirmala Sitharaman announced a cut in the provident fund contributions of both employers and employees for the next three months. The Finance Minister reduced the contribution of both employees and employers from 12-12 per cent to 10-10 per cent. However, for Central Public Sector Sector Enterprises (CPSEs) and Public Sector Undertakings (PSUs), the Employer’s Provident Fund Organization (EPFO) holds 12 per cent.
The new rule will not apply to these
The Finance Minister had said that this scheme to cut EPF contribution is also for those employees, who are not eligible to avail benefits under 24 percent EPF support and Prime Minister Garib Kalyan Package and its extension.
Under the PM Garib Kalyan package, companies in which up to 100 employees are present and 90 percent of these employees earn less than Rs 15,000 per month, the contribution of EPF on behalf of such companies and their employees from March to August 2020. Is being given by
Let us know that last week Sitharaman had announced to increase the benefits for three months under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), where the government will fill the full 24 per cent of the EPF contribution by August. This will provide relief to 3.67 lakh employers and 72.22 lakh employees.