Employees Provident Fund Relief! Nirmala Sitharaman extends EPFO relaxations for another 3 months

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Updated: May 13, 2020 6:26 PM

Earlier, the government had announced that amidst the COVID-19 pandemic, if any salaried individual requires funds out of his or her provident fund (PF), they can do so.

 EPF subscribers, 20 lakh crore, government package, employees provident fund, EPFThe PF interest rate for 2018-19 was 8.65 per cent, 8.55 per cent for the FY 2017-18 while for 2019-20 it is 8.5 per cent.

Finance Minister Nirmala Sitharaman in her press conference today has informed about the measures to be taken for the benefit of the members of employees provident fund (EPF). This will be a part of the PM Modi’s Rs 20 lakh crore special economic package.

In the employee provident fund (EPF) account, the employee’s contribution of 12 per cent of plus 12 per cent of the employer’s contribution will be paid by the government for another 3 months.

Liquidity relief to the employers will be extended for them. It was earlier for the month of March, April and May in which 3.67 establishments benefited from it. Nearly Rs 2500 crore is to be provided further to 72.22 lakh employees as the extension is proposed to be there for June, July and August.

This PF benefit will be applicable to all those establishments which have up to 100 employees and out of those, 90 per cent are earning less than Rs 15,000 a month. Only employees in such establishments will be eligible for this benefit.

Because of this relief measure, the employee’s take-home pay will be impacted as a portion of the gross salary will not be deducted towards PF. In these times, this government measure will help maintain liquidity i.e. cash-in-hand of the employees.

 

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