The Ministry of Labour & Employment has notified new rules that allow for reduced employees' provident fund (EPF) contributions for three months till July. Finance Minister Nirmala Sitharaman on May 13 announced a reduction of statutory provident fund (PF) contribution by both employers and employees to 10 per cent of basic wages from the existing 12 per cent for the next three months (May, June and July). The decision was taken to offer more take home salary for employees and to give relief to employers in payment of the PF, amounting to liquidity support of Rs 6,750 crore. In line with FM Sitharaman's announcement, the labour ministry issued a circular on Monday which said that the reduction in EPF contributions will be applicable "in respect of wages payable by it for the months of May, June and July, 2020".
"Whereas due to Covid-19 pandemic, lockdown is in force across the country and the Central Government after making necessary inquiry is satisfied that to provide liquidity in the hands of employers and employees, there arises a need to amend the notification of the Government of India in the Ministry of Labour published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 320(E), dated 9th April, 1997," the Ministry of Labour notified.
Here are 5 things to know about new EPF rules:
By Chitranjan Kumar
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