Govt extend EPF support by another 3 months
New Delhi, July 9 (KNN) The government will continue to pay the Employees' Provident Fund (EPF) contributions as the Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for extending the contribution - both 12 per cent employees’ share and 12 per cent employers’ share — under the Employees Provident Fund, totalling 24 per cent for another 3 months from June to August 2020.
“Cabinet approves extension of EPF contribution 24% (12% employees share and 12% employers share) for another 3 months from June to August 2020 under Pradhan Mantri Garib Kalyan Yojana (PMGKY)/Aatmanirbhar Bharat,” said Union Minister Prakash Javadekar, on Wednesday, while addressing media after the Cabinet meet.
The decision to pay both employer and employee contributions was announced back in March under the (PMGKY). As announced, the payment will be made for the organisations having up to 100 employees and upto 90 per cent of the employees are drawing wages up to Rs 15,000 per month. The decision was done to ensure that nobody suffers due to loss of continuity in the EPFO contribution.
As per the current laws, an employee having monthly salary of up to Rs 15,000 is mandatorily required to join the EPF scheme. The employee every month makes a contribution of 12 per cent of his basic plus dearness allowance (if any) to the EPF account. The employer is required to make a matching contribution. Out of the total EPF contribution (12% plus 12%), the employee's share plus employer's share of 3.67% goes to the EPF account. The balance 8.33% of the employer contribution goes to the Employees’ Pension Scheme (EPS).
So far, about 74.3 cr beneficiaries have been covered in April and 74.75 cr. beneficiaries have been covered in May and about 64.72 cr. beneficiaries in June 2020.
He also announced that Cabinet has approved the extension of Pradhan Mantri Garib Kalyan Anna Yojana which pertains to the allocation of additional food rations for further five months from July to November 2020.
Apart from depositing money into the EPF accounts, the government has also amended the rules wherein EPF subscribers can withdraw money from accounts to meet financial emergencies caused due to COVID-19.