EPF Contributions Reduced By 10% For Next 3 Months, Says FM; Take Home Salaries To Increase


Finance Minister introduced 15 measures, 6 of which take care of MSMEs, 2 referring to EPF, 2 referring to NBFCs, housing finance companies and MFIs, 1 on discoms, 1 on contractors, 1 on actual property, and 3 on tax measures.


New Delhi: Finance Minister Nirmala Sitharam on Wednesday unveiled a number of initiatives and measures taken by the Central authorities below particular financial package deal ‘Atmanirbhar Bharat Abhiyan’ value Rs 20 lakh crore. Finance Minister introduced 15 measures, 6 of which take care of MSMEs, 2 referring to EPF, 2 referring to NBFCs, housing finance companies and MFIs, 1 on discoms, 1 on contractors, 1 on actual property, and 3 on tax measures.Speaking on measures taken for EPF institutions, Sitharaman stated {that a} liquidity reduction of Rs 2,500 crore EPF help is being given to all EPF institutions.

As announcement by the Finance Minister, authorities of India pays 24 per cent of the month-to-month wages into EPF accounts under Rs 15,000 per thirty days, who’re employed in institutions having as much as 100 workers, with 90 per cent or extra of such workers incomes month-to-month wages lower than Rs 15,000.

The Finance Ministry additionally identified that the scheme, which will probably be accessible until August, is dedicated to learn greater than 72 lakh workers and almost 3.6 lakh employers. The transfer assist salaried people with a rise of their take-home wage and can give reduction to employers in fee of provident fund (PF).Sitharaman, whereas addressing a press convention, stated that for subsequent three months EPF or worker provident fund contribution will probably be 10 per cent every for workers and employers as in comparison with the statutory obligation of 12 per cent.

Announced on March 26, the EPF contribution scheme below Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched with the intention to assist the economically weaker sections deal with the COVID-19 pandemic.

In one other measure, Sitharam introduced that the Central authorities has determined to slash the speed of necessary PF contribution for each workers and employers by two per cent from 12 per cent to 10 per cent. She stated that initiative is aimed to supply extra liquidity to employers and workers and is probably going to supply further liquidity of Rs 6,750 crore

Nirmala Sitharaman’s detailed speech itemizing out initiatives for EPF institutions got here a day after Prime Minister Narendra Modi on Tuesday night introduced a particular financial package deal value Rs 20 lakh crore to mitigate the financial harm attributable to the novel Coronavirus.

The package deal, which is nearly 10 per cent of India’s GDP, consists of Reserve Bank of India (RBI)’s help and a Rs 1.74 lakh crore fund introduced earlier.  The package deal emphasizes on land, labour, liquidity, legal guidelines and also will concentrate on the farmers and the labourers who help the nation throughout the instances of disaster.



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