More take-home salary for employees! EPF contribution reduced, conditions apply
In order to provide more take-home salary for employees, the Employees' Provident Fund (EPF) contribution has been reduced for businesses and workers for three months, amounting to liquidity support of Rs 6750 crores, Union Finance Nirmala Sitharaman announced today.
EPF contribution reduced, conditions apply: What the government has announced
– Businesses need support to ramp up production over the next quarter
– It is necessary to provide more take-home salary to employees and also give relief to employers in payment of provident fund dues
– Therefore, the statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12 percent each for all establishments covered by EPFO for the next 3 months.
– CPSEs and state PSUs will, however, continue 12 percent as an employer contribution
– This scheme will be applicable for workers who are not eligible for 24 percent EPF support under PM Garib Kalyan Package and its extension
– This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees
– This will provide liquidity of Rs 6750 crore to employers and employees over 3 months