New Delhi: To ease the burden of the businesses which are getting back to work amid coronavirus pandemic, Finance minister Nirmala Sitharaman on Tuesday announced Rs 2500 crore EPF support business and workers for three months. Also Read – Trending News Today May 13, 2020: WE WANT THE SAME! Candle-Light Dinner Dates in ‘Quarantine Greenhouses’ Amps up Romance in Times of Corona at Amsterdam
She said that under Pradhan Mantri Garib Kalyan Package, the payment of 12 per cent of employer and 12 per cent of employee contributions were made into EPF accounts of eligible establishments. Also Read – Ravi Shastri Lauds PM Narendra Modi For Rs 20 Lakh Crore COVID-19 Relief Package
She further added that it was provided earlier for the salary of March, April and May this year. “This support will be extended by another 3 months to salary months of June, July and August 2020,” she added. Also Read – What Are MSMEs as Per New Definition of Finance Minister Nirmala Sitharaman?
Sitharaman said the scheme will provide liquidity relief of Rs 2500 crore to 3.67 lakh establishments and for 72.22 lakh employees.
In order to provide more take-home salary for employees and to give relief to employers in payment of PF, the EPF contribution has been reduced for businesses and workers for 3 months, amounting to liquidity support of Rs 6750 crores.
“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, the statutory PF contribution of both employer and employee will be reduced to 10 per cent each from the existing 12 per cent for all establishments covered by the EPFO for the next 3 months,” she said.
The FM further added that the CPSEs and the state PSUs will, however, continue to contribute 12 per cent as the employer contribution.
“This scheme will be applicable to workers who are not eligible for the 24 per cent EPF support under PM Garib Kalyan Package and its extension,” she said.
She said that the scheme will provide relief to 6.5 lakh establishments covered under the EPFO and about 4.3 crore such employees. She added that the scheme will provide liquidity of Rs 6750 crore to employers and employees over 3 months.
