Take home salaries to increase as EPF contribution for businesses, workers reduced to 10% for 3 months
New Delhi | Jagran Business Desk: In order to provide more in-hand salary for employees and to provide relief to employers in payment of PF, EPF contribution is being reduced for employers and employees for the next three months, amounting to liquidity support of Rs 6,750. The Finance Minister stated that businesses need support to ramp up production over the next quarter. Thus, it is necessary to provide more take home salary to employees and also give relief to employers in payment of provident fund dues.
As a result, the statutory PF contribution of both employer and employee will be reduced to 10 per cent each from existing 12 per cent (4 per cent overall) for all establishments covered by EPFO for the next three months.
However, CPSEs and state PSUs will continue to contribute 12 per cent as employer's contribution.
This scheme will be applicable for workers who are not eligible for 24 per cent EPF support under Pradhan Mantri Garib Kalyan Package and its extension.
This will provide relief to about 6.5 lakh establishments covered under EPFO and nearly 4.3 crore employees. It will provide liquidity of Rs 6,750 crore to employees and employees over the next three months -- June, July, and August.
The Finance Minister also stated that in order to ease stress as businesses get back to work, the government has decided to continue to provide EPF support for business and workers for the next three months providing a liquidity relief of Rs 2,500 crore.
Under PMGKGP, payment of 24 per cent employer, employee contribution were made into EPF accounts of eligible establishments.
It was provided earlier during the months of March, April, and May. It will be extended for the next three months. This will provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments for 72.22 lakh employees.
Posted By: James Kuanal