During this Lockdown situation as we know businesses are not working and everyone is facing issues of cash flow and therefore government had come up with a relief and assistance package which was called as Atmanirbhar Bharat, wherein various relaxation was provided one of which was regarding EPF contribution wherein it was said:
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.
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.
Thus now since people have to contribute 10% of the salary and not 12% it will increase cash in hand of employee and also cash in hand of the employer. Also it was announced that in case of PSU and government undertakings the contribution of employer would remain at 12% and there will be no reduction in same whereas the employee can contribute 10%.
Recently there was even extension of due date for depositing the EPF and ESI contribution.
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