Updated: Nov 13, 2020
During this pandemic our government surely doing something for everyone.
As everyone will be under the burden of debts which is going to create the stressful conditions for middle-class people. This news will give them somewhat a relief.
As you all aware that employees earning less than 15000 Rs monthly are mandatory to join the EPF scheme under The Employees Provident Fund & Miscellaneous Provisions Act, 1952.
The government has reduced monthly contribution rate of Employees Provident Fund (EPF) to 10% from 12% of basic wage. This rate of contribution is reduced for both employees and employers and can take more in-hand salary to home now.
And for the entities having less than 100 employees, the period of waiving off the contribution is extended till the salaries of August 2020.
As the incomes of some people almost stopped for two months now everyone must have signed those EMI memorandums. Those deferments do not affect your interests for three months. At least this more in-hand will help middle-class peoples.
This decision will provide relief to 4.3 Crore employees covered under EPFO by about 6.5 lakh establishments.
The government is going to provide liquidity relief of Rs 2500 Crore to ease the financial stress on businesses to get back on track by continuing EPF support for three months.
This liquidity relief will be provided to 3.67 establishments and 72.22 lakh employees.
But the contribution rate of 12% is not reduced for Central Public Sector Enterprises (CPSE) and State Public Sector Undertakings (PSU).