Finance Minister Nirmala Sitharaman had final week (May 13) introduced that for the following three months worker provident fund (EPF) contribution can be 10 per cent every for workers and employers as in contrast to the statutory obligation of 12 per cent. The transfer is to improve take-home salary for workers and to give reduction to employers in fee of provident fund.
The authorities has determined to proceed EPF assist for enterprise and staff for three extra months offering a liquidity reduction of Rs 2,500 crores, the FM mentioned. Under this new provision, the employers will proceed to pay 12 per cent, whereas staff could have the choice to pay 10 per cent for the following three months.
This will profit practically 4.three crore provident fund subscribers and and as many as 6.5 lakh institutions will even avail this profit from this.
However, this doesn’t apply to these firms the place authorities is giving the whole 24 % contribution in the direction of EPF.
Furthermore, in the case of the central public sector enterprises and state public sector, this exempt won’t be relevant. They will proceed to pay 12% as EPF contribution.
It could also be famous that final week, the Employees’ Provident Fund Organisation (EPFO) on Friday introduced main reduction to the businesses stating that no penalty can be levied upon them for penalty for delayed deposit of dues throughout lockdown.
The transfer is aimed to ease the compliance norms for six.5 lakhs EPF lined institutions and save them from legal responsibility on account of penal damages.
“Due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 and other disruptions due to pandemic, establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time,” an official launch mentioned.