Cabinet approves proposal to extend EPF contribution of 24% for another three months
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Cabinet approves proposal to extend EPF contribution of 24% for another three months

NetIndian News Network

New Delhi, July 9, 2020

The Union Cabinet on Wednesday gave its approval for extending the contribution of both 12% employees' share and 12% employers' share under the Employees Provident Fund, totalling 24%, for another three months from June to August as part of the package announced by the Government under Pradhan Mantri Garib Kalyan Yojana (PMGKY)/ Aatmanirbhar Bharat in the light of the COVID-19 pandemic.

This approval is in addition to the existing scheme for the wage months of March to May approved on April 15. The total estimated expenditure is of Rs 4,860 crore. Over 72 lakh employees in 3.67 lakh establishments will be benefitted.

For the wage months of June, July and August, the scheme will cover all the establishments having up to 100 employees and 90% of such employees earning less than Rs. 15,000 monthly wage.

The Government will provide Budgetary Support of Rs 4800 crore for the year 2020-21 for this purpose.

The beneficiaries entitled for 12% employers' contribution for June to August, under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.

Due to prolonged lockdown, it was felt that businesses continue to face a financial crisis as they get back to work. Therefore, the Finance Minister, as part of Aatmanirbhar Bharat, announced on May 13 that the EPF support for business and workers will be extended by another three months, for the wage months of June, July and August.

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