EPF contribution for next three months will be 10% both for employees & employers: FM
New Delhi, May 13 (KNN) Finance Minister Nirmala Sitharaman on Wednesday said that for next three months Employee Provident Fund (EPF) contribution will be 10% each for employees and employers as compared to the statutory obligation of 12%.
''The Central Public Sector Enterprises (CPSEs) and State PSUs will, however, continue to contribute 12% as employer contributions. This scheme will be applicable for workers who are not eligible for 14% EPF support under PM Garib Kalyan Package,'' said FM.
This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 cr such employees will provide liquidity of Rs 6750 cr to employers and employees over 3 months.
Sitharaman also announced an extension by another three months a scheme under which the government pays the EPF contribution of employees and employers. Under this scheme, the central government pays 24% of the monthly wages into EPF accounts below Rs 15,000 per month, who are employed in establishments having up to one hundred employees, with 90% or more of such employees earning monthly wages less than Rs 15,000.
This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees.
In March, the finance minister had announced that the government will take care of EPF contribution that of both the employer and the employee (12 per cent each) for the next three months in wake of coronavirus outbreak. The total contribution government will pay for 3 months is 24 per cent.