Union finance minister Nirmala Sitharaman on Wednesday introduced the statutory provident fund or PF contribution of each employer and worker can be diminished to 10% every from present 12% every for all institutions lined by EPFO for the following three months.
Nirmala Sitharaman was addressing a press convention to provide the main points of the Rs 20 lakh crore financial stimulus package deal introduced by Prime Minister Narendra Modi a day earlier.
With the intention to present extra take-home wage for workers and to provide reduction to employers in cost of PF dues, she mentioned, the EPF contribution is being diminished for companies and employees for 3 months, amounting to liquidity assist of Rs 6750 crore.
The Central Public Sector Enterprises (CPSEs) and state public sector undertakings (PSUs) will, nevertheless, proceed to contribute 12% as an employer contribution.
This scheme can be relevant for employees who aren’t eligible for 24% EPF assist beneath PM Garib Kalyan package deal and its extension, she mentioned.
This may present reduction to about 6.5 lakh institutions lined beneath EPFO and about 4.three crore such workers.