Announcements made by Finance Minister under ATMANIRBHAR BHARAT Scheme
By gkkedia Dt. May 18th, 2020
Rs. 2500 crore EPF Support for Business & Workers for 3 more months
- Businesses continue to face financial stress as they get back to work after the nationwide lockdown will discontinue as national wide lockdown caused massive loss of liquidity. Therefore, in order to boost industrial sector the finance minister on 13th May, 2020 announced, Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments. This was provided earlier for salary months of March, April and May 2020. This support will now be extended by another 3 months to salary months of June, July and August 2020. This will provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments and for 72.22 lakh employees.
The eligible establishment generally includes MSME’s and other small establishments.
EPF contribution reduced for Business & Workers for 3 months- Rs 6,750 crores Liquidity Support
- Businesses need support to ramp up production over the next quarter.
- And in order to increase liquidity in economy to keep the supply chain more effective, it is necessary to provide more take home salary to employees and also to give relief to employers in payment of Provident Fund dues.
- Therefore, statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months.
- CPSEs and State PSUs will however continue to contribute 12% as employer contribution.
- This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
- This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.
- This will provide liquidity of Rs 6750 Crore to employers and employees over 3 months.
These are the great efforts by government to revive the economy; this will definitely strengthen the multiplier effect, providing liquidity and motivate the business community to invest.