Coronavirus relief package: Govt to pay employer, employee’s PF contribution for 3 months

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Published: March 27, 2020 3:30:22 AM

The regulations under the EPF will be amended to include “pandemic” as a reason to allow non-refundable advance of 75% of the accumulated amount or three months of the wages, whichever is lower, from their accounts.

The move would benefit 80 lakh employees and 4 lakh establishments, finance minister Nirmala Sitharaman said.

As part of the economic package to counter the Covid-19 distress, the government on Thursday announced that it will pay for the next three months the monthly contribution of both employees and employers under the Employees’ Provident Fund (EPF) for workers earning below Rs 15,000 a month in establishments with up to 100 employees.

This means that 24% of the basic pay of these workers will be paid by the government – the cost to the exchequer is seen at Rs 5,000 crore. The move would benefit 80 lakh employees and 4 lakh establishments, finance minister Nirmala Sitharaman said. Additionally, the government also vowed to give workers a non-refundable advance of up to 75% of their EPF corpus or three months of wages, whichever is lower.

The regulations under the EPF will be amended to include “pandemic” as a reason to allow non-refundable advance of 75% of the accumulated amount or three months of the wages, whichever is lower, from their accounts. Families of four crore workers registered under EPF could use this facility. The EPFO has around six crore active subscribers and an accumulated corpus of around Rs 19 lakh crore.

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