New Delhi: Finance Minister Nirmala Sitaraman on Wednesday (May 13) announced Rs 2500 lakh crore support for the Employee Provident Fund (EPF) to make way for more take-home salaries for employees and increase working capital for the business.
The Centre’s decision to reduce the statutory PF contribution from 12 per cent to 10 per cent will benefit about 70 lakh employees and 3 lakh companies amid the distressing circumstances.
For the eligible establishments under Pradhan Mantri Garib Kalyan Package (PMGKP), the government is paying for both employer’s and employee’s EPF share at 12 per cent each, in order to strengthen small businesses.
Since businesses will continue to face financial crunch post COVID-19 pandemic, the government has decided to extend its support towards EPF contribution by another three months – June, July, August. It will also take up the PF of companies with 100 employees, earning less than 15,000 per month, the minister said.
Meanwhile, the employees of state public sector units (PSUs) will continue to pay 10 per cent EPF while the government will pay 12 per cent.
The liquidity measures are announced under Atmanirbhar Bharat stimulus package of Rs 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday.
