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

•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 Rs2500cr to3.67 lakh establishments and for 72.22lakh employees.

EPF contribution reduced for Business & Workers for 3 months-Rs6750 crores Liquidity Support 

•Businesses need support to rampup 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 3months.

•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 6.5lakh establishments covered under EPFO and about 4.3crores such employees.

•This will provide liquidity of Rs6750Crore to employers and employees over 3months.