To ease financial stress as businesses get back to work, government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crore. This will be for the month of June, July and August.
“Liquidity relief of Rs 2,500 crore to 72.22 lakh employees by extending EPF contribution for next 3 months” said the Finance Minister.
The Finance Minister also announced the statutory provident fund or PF contribution of both employer and employee will be reduced to 10 per cent each from existing 12 per cent each for all establishments covered by EPFO for the next three months. However, for the central public sector enterprises and state PSUs, we will continue to pay 12 per cent. Employees in these PSUs will be given the advantage of paying only 10 per cent, she adds.
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 6,750 crores. This scheme will be applicable for workers who are not eligible for 24 per cent EPF support under PM Garib Kalyan package and its extension, she said. This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.