Notification on govt bearing EPFO contribution likely today

By: |
April 03, 2020 1:45 AM

A total of 80 lakh employees involved in four lakh establishments are likely to be benefitted, the finance ministry had earlier said.

The scheme is aimed at incentivising organised sector organisations to continue with their employees on their payroll .

The Employees Provident Fund Organisation (EPFO) is likely to issue a notification on April 3 on the scheme under which government promised to bear the entire contribution of both the employer and the employees, totaling 24%, towards the Employees Provident Fund (EPF) for three months. “Messages have been sent to all. Eligible ones have been identified. The notification may be issued tomorrow,” central provident fund commissioner (CPFC) Sunil Barthwal told FE.

The scheme is aimed at incentivising organised sector organisations to continue with their employees on their payroll despite disruptions arisen out of the Covid-19 pandemic, and thus saving jobs for the low-wage earners. Establishments having less than 100 employees and with 90% of such employees earning less than Rs 15,000 a month are eligible to avail of the benefit of the scheme.

A total of 80 lakh employees involved in four lakh establishments are likely to be benefitted, the finance ministry had earlier said. The implementation of the scheme is likely to cost around Rs 5,000 crore to the exchequer. The EPFO has already notified the other scheme, announced by the finance minister on March 26 under the Pradhan Mantri Garib Kalyan Yojana. Under this scheme, subscribers were allowed to avail non-refundable advance of 75% of the accumulated amount or three months of wages, whichever is lower, from their accounts. The EPFO has around six crore active subscribers and an accumulated corpus of around Rs 19 lakh crore.

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