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

By: |
March 27, 2020 3:30 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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Motilal Oswal’s 10 stock picks for retail investors
2Large, Multi and Small-Cap Mutual Funds: How to decide which work best for you?
3Income Tax refunds of Rs 1.27 lakh crore issued so far this fiscal