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Employees Provident Fund EPF Support for Business and Workers under Self-Reliant India Movement Package: Details

Employees Provident Fund EPF Support for Business and Workers under Self-Reliant India Movement Package: Details.

आत्मनिर्भर भारत अभियान पैकेज Self-Reliant India Movement Package

Employees Provident Fund Support for business and organised workers

The scheme introduced as part of PMGKP under which Government of India contributes 12% of salary each on behalf of both employer and employee to EPF will be extended by another 3 months for salary months of June, July and August 2020. Total benefits accrued is about Rs 2500 crores to 72.22 lakh employees.

Rs. 2500 crore EPF Support for Business & Workers for 3 more months

  • Businesses continue to face financial stress as they get back to work.
  • Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments.
  • This was provided earlier for salary months of March, April and May 2020
  • This support will be extended by another 3 months to salary months of June, July and August 2020
  • This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees.

epf-support-for-business-and-workers-under-self-reliant-india-movement-packageEPF Contribution to be reduced for Employers and Employees for 3 months

Statutory PF contribution of both employer and employee reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. This will provide liquidity of about Rs.2250 Crore per month.

EPF contribution reduced for Business & Workers for 3 months- Rs 6750 crores Liquidity Support

  • Businesses need support to ramp up production over the next quarter.
  • It is necessary to provide more take home salary to employees and also to give relief to employers in payment of Provident Fund dues,
  • Therefore, statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months.
  • CPSEs and State PSUs will however continue to contribute 12% as employer contribution.
  • This scheme will be applicable for workers who are not eligible for 24% 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.

Source: Details of Self Reliant India Movement

http://164.100.117.97/WriteReadData/userfiles/Aatmanirbhar%20Presentation%20Part-1%20Business%20including%20MSMEs%2013-5-2020.pdf

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