Finance Minister Nirmala Sitharaman said on Wednesday that the Centre will provide Rs 2,500 crore EPF support for businesses, workers for three more months.
The scheme was provided earlier for the salary months of March, April and May. Consequently, this support will be extended by another three months for the salary months of June, July and August.
Under the Pradhan Mantri Garib Kalyan Package (PMGKP), the Finance Minister said that payment of 12 per cent of employer and 12 per cent of employee contributions was made into the EPF accounts of the eligible establishments.
The scheme will provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments, benefitting 72.22 lakh employees.
Furthermore, the minister announced that statutory PF contribution of both employer and employee has been reduced to 10 per cent from the existing 12 per cent across all establishments covered by the EPFO for the next three months.
CPSEs and state PSUs will, however, continue to contribute 12 per cent as employer contribution.
The scheme for lower EPF contribution will be applicable to workers who are not eligible for 24 per cent EPF support under the PM Garib Kalyan Package and its extension.
This scheme is estimated to provide relief to about 6.5 lakh establishments covered under the EPFO and benefit about 4.3 crore such employees. It will provide liquidity of Rs 6,750 crore to employers and employees over three months.-IANS News
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