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 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

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