EPF contribution reduced to 10% for the next 3 months

Union Finance Minister Nirmala Sitharaman announced details for the total Rs 20 lakh crore stimulus package in a press conference on Wednesday. To increase the demand in the country and more take-home salary, the government has decided that EPF contribution for business entities and workers for the next three months will be reduced to 10 percent from the current 12 percent.

EPF contribution reduced for business and workers for 3 months

• Statutory PF contribution of both employer and employee will be reduced to 10% each from the existing 12% each for all establishments covered by EPFO for the next three months.
• CPSEs and State PSUs will, however, continue to contribute 12% as an employer contribution.
• This scheme will be applicable for workers who are not eligible for 24% EPF support under the PM Garib Kalyan Package and its extension.
• This scheme will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore employees.
• Earlier under PMGKP, payment of 12 percent of employer and employee contributions was made into EPF accounts for companies employing up to 100 workers from March to May. Now, this support is extended for June, July, and August as well.

In order to provide more take home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for Businesses & Workers for 3 months, amounting to a liquidity support of Rs 6750 crores. #AatmaNirbharBharatAbhiyan pic.twitter.com/VSysfvk4KU

— PIB India #StayHome #StaySafe (@PIB_India) May 13, 2020