Govt to provide EPF support for employers and employees for next three months: Finance Minister
New Delhi | Jagran Business Desk: The Finance Minister on Wednesday said that in order to ease financial stress as businesses get back to work, the government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores.
Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into FPF accounts of eligible establishments.
This was provided earlier for the salary months of March, April, May 2020.
This support will be extended by another 3 months to salary months of June, July, and August 2020.
This will provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments and for 72.22 lakh employees.
In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses and workers for 3 months, amounting to liquidity support of Rs 6750 crores.
Statutory PF contribution of both employer and employee will be reduced to 10% each from the existing 12% each for all establishments covered by EPFO for the next three months.
CPSEs and state PSUs will however continue to contribute 12% as employer contribution.
This scheme will be applicable to workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.
This will provide liquidity of Rs 6750 crore to employers and employees over 3 months.
Besides relief measures in EPF, Nirmala Sitharaman also announced relief packages to SMEs, NBFCs, TCS, TDS rate cut by 25 per cent, among others.
In March, Finance Minister had announced a stimulus package of Rs 1.7 lakh crore for poor and vulnerable sections of the society after PM Modi had announced the nationwide lockdown to prevent the spread of COVID-19.
Posted By: James Kuanal