The Central Government (CENTRAL GOVT) under the Self-Reliant India Campaign (AATMNIRBHAR BHARAT ABHIYAN) made several big announcements in May.
New Delhi: Due to Corona Pandemic, due to loss of salaries and loss of salaries, the government had made many big announcements to give relief to the people, one of them was on the EPF Contribution. was . In fact, the government reduced the monthly EPF contribution (EPF) from 24 percent to 20 percent. Finance Minister Nirmala Sitharaman ( Finance Minister Nirmala Sitharaman ) went by the announcement of the main objective was to give relief to the company and employees during coronavirus that where an access even more cash in the hands of employees to cope with reduced burden of employees the same epidemic was .
The government had made this arrangement for May-June-July 2020. This means that from August once again the EPF contribution will be 24% as before, now both the company and the employee will have to make 12-12% of the contribution.
What does the rule say – According to the rule of EPF scheme, every month the employee puts 12% of the basic wage audience allowance from his salary to the EPF account and the contribution is done on behalf of the company equal to the employee, thus mixing the EPF from both sides An amount of 24 percent is deposited in the account every month.
It is worth noting that out of the 12 percent paid by the company employees, 3.67 percent goes to EPF while the remaining 8.33 percent goes to the EPA Saini Employees Pension Scheme account.
Therefore, the amount was reduced – the government reduced the contribution to 20%, which was directly benefiting both the parties. This move has benefited 4.3 crore employees and 6.5 lakh companies of the Employees Provident Fund Organization. In the Ministry of Labor, it was clear that institutions and employees can continue their contribution at the rate of 12%, but it will not be necessary to do so, it will be entirely the decision of the company and the employees themselves.