New Delhi, May 13:
EPF contribution to be reduced for businesses, workers for 3 months to 10 per cent from 12 per cent, stays at 12 per cent for state-run firms, Finance Minister Nirmala Sitharaman announced. The government will pay the Employee Provident Fund (EPF) contribution for employees of MSMEs to help them recover from the virus crisis, Ms Nirmala Sitharaman also said, in order to ease financial stress as businesses get back to work. The government will continue EPF support for business and workers for three more months, providing a liquidity relief of Rs 2,500 crore.
“The EPF of two quarters will be paid by the government for companies with up to 100 employees and where 90 per cent of the staff is paid up to Rs 15,000 a month,” said Nirmala Sitharaman. This would help businesses facing financial stress as they get back to work, the government said.
The government had made payments of 12 per cent of employer and 12 per cent of employee contributions into EPF accounts in March, April and May. This will be extended by another three months to the salaries of June, July and August.
In order to provide more take home salary for employees and to give relief to employers in payment of Provident Fund, EPF contribution is being reduced for businesses and workers for 3 months, amounting to a liquidity support of Rs 6,750 crores.
